By hidden design, the Alerian MLP ETF (AMLP) robs shareholders of 37% of their upside gains. It was the first ETF do this, and when I revealed AMLP’s dirty little secret to owners and potential buyers, many did not seem to care. “It’s all about the dividend,” they emphatically stated. “Plus,...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...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...Credit Suisse Finally Liquidates ETNs Delisted in 2009
Credit Suisse decided to delist three ETNs on April 3, 2009. That in itself is not strange, but Credit Suisse also made the decision to not liquidate these ETNs. This move, or lack of a move, apparently allowed Credit Suisse to avoid having to return the money to the note-holders, thereby allowing...AMLP Expense Ratio Surges To 4.86%
They did it again. Alerian MLP ETF (AMLP), the first ETF structured as a C-corporation, raised its expense ratio for the second time this year. It issued another prospectus supplement dated May 9, 2012 (pdf), increasing expenses from 1.40% to 4.86%. Most ETF data sources still incorrectly list...MLPA: Another C-Corp Double Taxation ETF
And then there were three. The listing of Global X MLP ETF (MLPA) today (4/19/12) makes it the third ETF structured as a C-corporation, thereby subjecting its shareholders to the heavy burden of double-taxation on taxable income received from the fund and all capital gains. Like its two predecessors,...YMLP: Another Abomination of the ETF Wrapper
There are 1,441 ETFs and ETNs listed for trading today. 1,439 of them are not structured as C-corporations and, therefore, generally not liable for any federal or state taxes. The other two ETFs do have a C-corporation structure, which is costing their shareholders millions of dollars (more than...New ETRACS VIX ETNs With 5.35% Annual Expenses
UBS on September 8 rolled out a dozen ETNs targeting long and short (inverse) exposure to VIX futures at six monthly maturity intervals. The new exchange-traded notes are anticipated to mature in 30 years. The inverse versions include an “Event Risk Weekly Hedge Cost” that saddles investors with...Alerian MLP ETF Has Higher Fee Structure Than Hedge Funds
If you think the “2 and 20” fee structure of most hedge funds is astronomical, then wait until you hear about the “1 and 37” structure of Alerian MLP ETF (AMLP). The “2 and 20” structure refers to fees and expenses computed from 2% of the assets and 20% of the profits. For AMLP, the fees...Are Airlines Toast?
Like a lot of people, I used to enjoy flying. Packing up, going to the airport, standing in line, and jetting off to exotic places like Chicago was a welcome break in my otherwise non-adventurous life. No more. Now I view airline travel as an occasional necessary evil. New security measures resulting...