5 Funds to Play U.S. Oil Dominance

IEA predicts America will lead world in oil producing by 2017

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ALPS Alerian MLP ETF

AlerianMLP185 5 Funds to Play U.S. Oil DominanceAll across the country, pipelines, petroleum storage tanks and switching terminals help move energy from the wellhead to processing facilities. Big dollars can be made in supplying and owning that infrastructure. These profits will continue to grow for investors as new critical energy infrastructure is needed to tap all of those unconventional wells.

Investors can use the ALPS Alerian MLP ETF (NYSE:AMLP) to own some of the biggest pipeline and gathering firms in the business — like industry stalwarts Kinder Morgan (NYSE:KMP) and Boardwalk Pipeline Partners (NYSE:BWP) — through their master limited partnership units (MLPs).

MLPs have grown in popularity as their tax structure allows them to distribute income that avoids the double taxation corporate dividends suffer. Additionally, the ETF provides this access without some of the dreaded MLP tax complications like K-1 statements.

That focus on the MLP infrastructure gives AMLP its appealing yield of more than 6%.


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/5-funds-to-play-u-s-oil-dominance/.

©2014 InvestorPlace Media, LLC

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