- The Alerian MLP ETF offers a yield of around 7% without requiring a K-1.
- That 7% yield is increasingly attractive compared to other asset classes. (I am adjusting the yield down to 7% from 8% given the 0.85% expense ratio on the fund.).
- In the short term, demand is recovering off COVID lows, yet MLPs remain 25% off pre-COVID levels.
- Though the U.S. is seeing an energy transition, it will take decades, and gas and oil will remain in the energy mix just as coal has for 120 years since its U.S. usage share first declined.
- This ETF, despite a fairly high 0.85% expense ratio, provides a relatively simple way to implement this theme.
For further details see:
Alerian MLP ETF: A Diversified Play On Energy Infrastructure With 7% Yield And No K-1