ENB:CC - MLP ETFs And Finding The Right Fit For Your Portfolio Goals
- A mutual fund, ETF, or closed-end fund that owns more than 25% MLPs will be taxed as a corporation, but funds that own up to 25% MLPs can maintain their pass-through structure.
- Funds that predominantly hold MLPs offer the potential for tax-deferred income but may experience tax drag as underlying holdings gain.
- RIC-compliant MLP funds have lower yields by nature of the 25% cap on MLPs but can appeal to investors seeking total return or diversified midstream exposure.
For further details see:
MLP ETFs And Finding The Right Fit For Your Portfolio Goals