What are some MLP ETFs?

Top MLP ETFs to Consider for Income Investors

If you're looking for steady income and exposure to energy infrastructure, Master Limited Partnership (MLP) ETFs might be worth a closer look. These funds focus on companies that operate pipelines, storage facilities, and other midstream energy assets—typically offering attractive yields and tax advantages.

One of the more popular choices is the Global X MLP ETF (MLPA), with an expense ratio of 0.77%. It tracks the Solactive MLP & Energy Infrastructure Index, giving investors diversified access to midstream energy firms. Another solid option is the Tortoise North American Pipeline ETF (TPYP), which comes in at a lower expense ratio of just 0.4%, making it a cost-efficient way to tap into North American pipeline operators.

There are also ETNs (Exchange-Traded Notes) like the AMJ Balerian MLP Index ETN and the Barclays ETN+ Select MLP ETN (ATMP). While ETNs offer similar exposure, it's important to remember they carry credit risk since they're debt instruments issued by financial institutions—not direct ownership of underlying assets.

MLP ETFs can be a smart way to gain yield in a low-interest environment, but they’re not without risks. Most holdings are tied to the energy sector, which can be volatile. Plus, MLPs have unique tax structures—distributions are often considered a return of capital, which can complicate tax reporting.

Still, for investors seeking monthly income and long-term total return potential, MLP ETFs like MLPA and TPYP remain compelling choices. As with any investment, it's wise to consider your risk tolerance and do your homework—or consult a financial advisor—before jumping in.