Why Energy Infrastructure MLPs?
Thematically, MLPs represent an investment in the build-out of US energy infrastructure
over the next few decades. MLPs own, operate, and build energy infrastructure assets
such as pipelines, storage facilities, and processing plants.
- Energy renaissance drives growth -
Billions of investment dollars are required
for infrastructure to keep pace with the boom in domestic production of natural gas
- Toll-road business models - MLPs possess regional monopoly footprints and
benefit from inflation-hedged contracts and inelastic energy demand.
- Income potential - MLPs pay out the majority of their operating cash flow as
*The current 25 constituents all pay quarterly distributions.
1 Market Price is based on the midpoint of the bid/ask spread at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times.
2 The Premium / Discount is the amount (stated in dollars or percent) by which the selling or purchase price of an ETF is greater than (premium) or less than (discount) its face amount/value or net asset value (NAV).
*Sources: (1) National Institute of Health, Aging Hearts and Arteries. http://www.nia.nih.gov/health/publication/aging-hearts-and-arteries-scientific-quest/chapter-4-blood-vessels-and-aging-rest
(2) Pipeline 101. http://www.pipeline101.com/overview/crude-pl.html (3) Pigging Products and Services Association. http://www.ppsa-online.com/about-pigs.php (4) Energy Information Administration, 2012. http://www.eia.gov (5) Food and Agriculture Organization of the United Nations, 2006. "Livestock a major threat to environment," http://www.fao.org/newsroom/en/news/2006/1000448/index.html (6) Energy Information Administration, 2012. http://ir.eia.gov/ngs/ngs.html
MLP - Master Limited Partnership; ETF - Exchange Traded Fund
All K-1s are received and processed by the Alerian MLP ETF. The Alerian MLP ETF distributes a single Form 1099 to its shareholders. This notice is provided to you for informational purposes only, and should not be considered tax advice. Please consult your tax advisor for
Alerian MLP ETF Shares are not individually redeemable. Investors buy and sell shares of the Alerian MLP ETF on a secondary market. Only market makers or "authorized participants" may trade directly with the Alerian MLP ETF, typically in blocks of 50,000 shares.
Correlation - A statistical measure of how two securities move in relation to each other.
The Fund is taxed as a regular corporation for federal income tax purposes. This differs from most investment companies, which elect to be treated as “regulated investment companies” under the Code in order to avoid paying entity level income taxes.
There are risks involved with investing in ETFs including the loss of money. Additional information regarding the risks of this investment is available in the risks section.
An investor should consider the investment objectives, risks, charges and expenses carefully before investing. Click the link to obtain a prospectus php //echo getOneDoc(107, 1,'prospectus,'); ?> which contain this and other information, or call 877.398.8461. Read the prospectus php //echo getOneDoc(107, 1,'prospectus'); ?> carefully before investing.
The Fund invests primarily in energy infrastructure companies which may be adversely affected by changes in worldwide energy prices, exploration, production spending, government regulation, changes in exchange rates and depletion of natural resources.
ALPS Portfolio Solutions Distributor, Inc. is the Distributor for the Alerian MLP ETF.
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