AMLP's C-corp structure forces the fund to pay corporate taxes on gains, and this erodes its advertised 7 to 8% yield before distributions ever reach investors.
Over ten years, MLPX returned 212% and ENFR returned 208% versus AMLP's 97%, thanks to RIC structures that avoid corporate tax entirely.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
If you own the Alerian MLP ETF (NYSEARCA:AMLP), you are paying both a fund manager and a corporate tax bill that the marketing materials rarely draw attention to. AMLP is structured as a C-corporation, which means the fund itself pays federal and state income tax on the gains inside your portfolio before you ever see them.
Start with the sticker fee. AMLP carries a 0.85% expense ratio, or about $85 per year on every $10,000 invested. Some third-party trackers cite an all-in figure closer to 1.01% once operating costs are folded in. Either way, it is expensive for what is essentially a rules-based basket of midstream pipeline partnerships.
#amlp #fund #gains #returned
Over ten years, MLPX returned 212% and ENFR returned 208% versus AMLP's 97%, thanks to RIC structures that avoid corporate tax entirely.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
If you own the Alerian MLP ETF (NYSEARCA:AMLP), you are paying both a fund manager and a corporate tax bill that the marketing materials rarely draw attention to. AMLP is structured as a C-corporation, which means the fund itself pays federal and state income tax on the gains inside your portfolio before you ever see them.
Start with the sticker fee. AMLP carries a 0.85% expense ratio, or about $85 per year on every $10,000 invested. Some third-party trackers cite an all-in figure closer to 1.01% once operating costs are folded in. Either way, it is expensive for what is essentially a rules-based basket of midstream pipeline partnerships.
#amlp #fund #gains #returned
3 months ago
