New MLP ETNs Offer Tax Benefits

Oct 9 2013 | 10:12am ET

Investors are flocking to a new kind of exchange-traded note that offers access to master-limited partnerships, but with less of a tax bite.

MLP exchange-traded products have taken in $9.6 billion in new money this year, more than they took in all of last year, Morningstar reports. Much of the attraction can be traced to so-called "second-generation" MLP ETFs that offers less of a tax liability than MLPs, which invest in energy assets, generally feature.

The second-generation products avoid the tax hit by not actually owning most of the MLPs they track, The Wall Street Journal reports. If the products keep their MLP ownership to below 25%, they do not carry corporate tax rates.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...