Types of MLPs and what is MLP ETF

Master limited partnerships; they are often looked like tax benefit investing for investors. Usually MLPs indulge in production and processing of different energy sources. ETFS stands for exchange traded funds; MLP ETFs have been designed for investors in such a way that they can earn benefits from both the ETF's and the MLP.

Alerian MLP is one of the five largest assets; it is nothing but an MLP that earns major amount of its profits from transport, storage and processing of the energy. Jay hatfield is one of the best examples of the MLP.

Following are the different types of Energy MLP's.

• Upstream MLP - This type of MLP is solely responsible for exploration, recovery and development and production of crude oil. This is also applicable for natural gas and other liquids.
• Midstream MLPs - now these master limited partnerships are only into gathering and transportation of natural gas and other fuels. Pipeline is one of the best examples of the midstream MLP. Majority of the MLP running in the market currently be it energy based or non energy based both are running under the midstream MLP category only.
• Downstream MLP - Downstream MLP is nothing but a company that is only involved in different distribution of fuel to the end customers. This mainly includes residential, industrial and even agricultural entities.

Why one must choose energy infrastructure MLP?

• Well an energy infrastructure MLP is going to give a damn good return on your investment because of the tax benefits given to them.
• Billions of dollars are required by the infrastructure industry to maintain the domestic supply of crude oil and natural gas.
• Such MLP's payout majority of their cash flow of the operations as payouts and dividends to their investors.
• Such MLP's build their own infrastructure like pipelines and storage facilities extra which is very profitable in long run.

MLPs investment has a very good prospect for the investor who is looking for tax benefit and long term dividends and profits. And ever since 2014, many investors are considering energy MLP's only.

Source : https://sites.google.com/site/amzamlp/types-of-mlps-and-what-is-mlp-etf