Alerian MLP ETF (AMLP) Finally Admits Its 8% Expense Ratio

Warning:  The SEC Has Determined an 8% Expense Ratio is Hazardous to Your Wealth. Unfortunately, the SEC has not followed the example of the Surgeon General and does not require such warning labels on ETFs and mutual funds.  The Alerian MLP ETF (AMLP) was the first ETF structured as a C-corporation,... 

Eleven ProShares ETFs Become Broken Products

Note: ProShares resumed issuance of creation units for these 11 ETFs on 5/6/14 (press release). Last Friday (May 2, 2014), ProShares announced the suspension of creation units for eleven ETFs.  The ability to create and redeem shares is the primary characteristic of what makes an ETF an ETF.  Without... 

Checking In On The MLPI-AMLP Taxman Trade

Three years ago today, investors received their first warnings about the problems of owning MLPs inside an ETF.  Unlike all the other ETFs that came before it, the Alerian MLP ETF (AMLP) from ALPS was the first ETF structured as a C-corporation and saddled with federal and state income tax liabilities. ... 

MLP ETF Expenses Hit The Fan

Since the inception of the Investment Company Act of 1940, investors have grown to expect every mutual fund, closed-end fund (“CEF”), and exchange traded fund (“ETF”) to be treated as a “pass-through vehicle” for tax purposes.  The entity itself would not pay any taxes, and all tax liabilities... 

Yorkville ETF Expense Ratios at 6.34% and 6.86%

Yorkville ETF Advisors manages two MLP ETFs.  The Yorkville High Income MLP ETF (YMLP) became the second C-corporation ETF with its March 2012 launch, and the Yorkville High Income Infrastructure MLP ETF (YMLI) joined the menu in February 2013.  At the time of their launches, I warned investors about... 

How to Build an MLP ETF That Does Not Lag Its Index

ETF sponsors have demonstrated their ingenuity in many facets of the ETF industry, providing investors with easy access to a wide variety of asset classes.  These ETFs track their target indexes very closely, even after accounting for all expenses.  The primary exception is ETFs claiming to track Master... 

Your iShares ETF Changed Its Name

Note:  Article and linked table updated 7/5/2013 to reflect a total of 270 name changes instead of the 220 BlackRock originally reported to the NYSE on 6/28/13. Effective Monday (7/1/2013), 270 iShares ETFs received new names.  Ticker symbols and CUSIPs remain unchanged.  In many cases, the name alterations... 

Alerian MLP ETF (AMLP) Cuts Expense Ratio to 4.85%

Alerian MLP ETF (AMLP), the first ETF structured as a C-corporation, issued a prospectus update March 31, 2013 (pdf).  Total Annual Fund Operating Expenses decreased from 4.86% to 4.85% resulting in a non-perceptible change that did not warrant a company press release.  Further, the document now identifies... 

Fidelity Increases Commission-Free ETFs to 66

On March 13, 2013, Fidelity Investments and BlackRock, Inc. (BLK) announced changes to their long-term strategic alliance.  This includes expanding the quantity of no-commission iShares ETFs from 30 to 65, achieved by adding 45 ETFs to the list and removing 10.  Fidelity’s lone ETF offering, Fidelity... 

The Successful Failure of PIMCO Total Return ETF

Today is the one-year anniversary of the launch of the PIMCO Total Return ETF (BOND).  Its March 1, 2012 launch was the most highly anticipated and hyped ETF introduction in years, some would say ever.  Today, BOND has $4.3 billion in assets, a one-year total return of 12.6%, and most analysts gushing... 

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