{"id":2075,"date":"2021-07-12T10:36:50","date_gmt":"2021-07-12T10:36:50","guid":{"rendered":"https:\/\/investwithanedge.com\/?page_id=2075"},"modified":"2021-11-22T10:03:41","modified_gmt":"2021-11-22T10:03:41","slug":"amj-new-etn-offers-more-access-to-master-lp-market","status":"publish","type":"page","link":"https:\/\/investwithanedge.com\/amj-new-etn-master-lp\/","title":{"rendered":"AMJ: New ETN Offers More Access to Master LP Market"},"content":{"rendered":"
Last month a new exchange-traded note slipped under the radar and received very little notice. The JPMorgan Alerian MLP Index ETN<\/strong> began trading under the ticker AMJ on April 2.<\/p>\n AMJ tracks an index of Master Limited Partnerships \u2013 partnerships that trade on U.S. exchanges and are usually connected to energy pipelines and storage. They are income-oriented investments that are usually bought for their high yield and low correlation to stocks, bonds and real estate. Some examples are Kinder Morgan Energy Partners (KMJ), ONEOK Partners (OKS), and Enbridge Energy Partners (EEP).<\/p>\n The partnership structure of MLPs brings certain tax benefits. It also creates tax complications which can be annoying. AMJ helps reduce the hassle by paying a quarterly coupon and accounting for MLP income on a 1099 rather than a K-1 form. There is also a diversification benefit in owning a package of MLPs rather than a smaller number of individual issues, which tend to be illiquid.<\/p>\n