Gyroscopic Investing

Has anyone looked at AMLP (Alps Alerian MLP ETF) for a VP investment.  It is a Master Limited Partnership energy infrastructure ETF with 6B in assets, a rather high ER at .85 but a current dividend yield of 5.91%. Might be interesting for those interested in a dividend producing VP. Thoughts?

Alanw wrote: Has anyone looked at AMLP (Alps Alerian MLP ETF) for a VP investment.  It is a Master Limited Partnership energy infrastructure ETF with 6B in assets, a rather high ER at .85 but a current dividend yield of 5.91%. Might be interesting for those interested in a dividend producing VP. Thoughts?

What is the tax treatment?

I don't think MLP ETF's get the same treatment as individual MLPs.

AdamA wrote:

Alanw wrote: Has anyone looked at AMLP (Alps Alerian MLP ETF) for a VP investment.  It is a Master Limited Partnership energy infrastructure ETF with 6B in assets, a rather high ER at .85 but a current dividend yield of 5.91%. Might be interesting for those interested in a dividend producing VP. Thoughts?

What is the tax treatment?

I don't think MLP ETF's get the same treatment as individual MLPs.

Not sure of the tax treatment of the ETF vs. Individual MLP's.  I believe the MLP's are required to pay 90% of their income to investors as dividends.  The nearly 6% dividend of the ETF corresponds to the dividends of the individual MLP's.  The ETF would provide diversification from the individual MLP.  Just a thought on dividend investing.

MLPs really give you a benefit of being able to write off capital depreciation to offset distributions.

I don't think the ETF gives you that awesome write off.

Lastly, if you do your own taxes and own MLP(s), you will sell them all immediately after trying to figure that madness out. Seriously, not worth the book keeping hassle.