UBS E-TRACS Alerian Natural Gas MLP ETN
Dividend yield: 4.9%
If there’s one energy commodity that is pushing the United States towards energy independence, it has to be natural gas. From Pennsylvania’s Marcellus to Colorado’s Niobrara shale, energy producers are pulling out a sheer abundance of natural gas and natural gas liquids (NGLs). Moving and processing all of that natural gas is quickly becoming a booming business.
That’s where the ignored UBS E-TRACS Alerian Natural Gas MLP ETN (MLPG) comes in.
The fund tracks the 20 largest natural gas-focused MLPs in the previously mentioned Alerian index. To be included, MLPs must earn the majority of their cash flows from the transportation, storage and processing of natural gas and NGLs. There’s no coal MLPs here.
What investors get is a stable portfolio of midstream firms that yields a nice 4.9%. It isn’t the highest-yielding ETF on this list, but it does provide plenty of stability. Secondly, MLPG could see some hefty capital gas as much more natural gas infrastructure is needed to tap our shale reserves. MLPG’s underlying holdings could see plenty of share price appreciation as that takes place.
Expenses for MLPG cost just 0.85%.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.