ETF of the Day - AMLP

The market is selling off on more negative news out of Cyprus, but that has not had an affect on the master limited partnerships (MLPs). The sector is moving higher in the face of a broad market sell-off and a 1% drop in the price of oil.

The Alerian MLP ETF (AMLP) is a basket of 25 market-cap weighted energy infrastructure MLPs that earn the majority of their revenue through the transportation, storage, and processing of energy commodities. The ETF is up 1.1% today and is breaking out of a two-month consolidation pattern to a new historic high.

Why AMLP?

• Current dividend yield = 6.1%
• Billions of dollars will be spent in upgrading and expanding the U.S. energy infrastructure system
• Low correlation to the S&P 50 offers portfolio diversification
• Inflation hedge
• No K-1's for tax reporting, only a 1099 (very important for many investors)
• AMLP is an ETF, not an ETN like many of its competitors

The chart below shows the breakout on the right-hand side of the chart. AMLP is flashing a buy signal today!!