They just announced they are adding Sunoco Logistics and dropping LINE from their ETF. Does anyone know how many shares AMLP has in LINE ? LINE is not one of their top ten holding so its less than 4% of their total holdings, which means less than 1 million shares. On Sept 20th they will rebalance so whatever number of shares they hold will get "dumped" on the market. Could be a short term negative.
Look at AMLP and you will find in their constituent index about 92,000 shares of LINE. Perhaps some of those shares were already sold; perhaps not but in light of the volume of trading in LINE that is a very small number of shares.
I am not sure if they own LINCO shares as well. But not to worry. Sun Logistics is controlled by ETP; from the way I see it; IMHO this is no big deal.
If I understand it correctly, the Alerian is simply an INDEX, similar to the Dow Jones 30 or the NASDAQ which simply track the prices of the underlying securities to give a representation of the performance of their market segment, in this case of Large Cap MLP's. They don't own any of the underlying securites.
Sentiment: Strong Buy
Nope. Has to do with twisting the term index to sell products. Something many wish the SEC would finally address.
Megacap index would have GE, Microsoft, CVX so you end up with a sample with relationship to our economy. Weighted one way or another.
So an index as commonly understood comes with diversification to a very significant degree.
This Alerian sales product is neither a sector fund nor an index. It is not even logically weighted.
Shown most clearly by the OLB bringing it and chattering time after time. An upstream energy producer cannot be logically or rational compared to an basket of equity which is primarily pipe.
In fact the progressive politically disrupted American energy markets are favored by the lack of infrastructure while EPs have disrupted prices far below the known world market price.
But the OLB lives like a Progressive for irrationality and dissembling to protect their primitive faith of worshiping man.
They are replacing it in an index, not in a fund:
Alerian announced today that following the close of business on Friday, September 20, Sunoco Logistics Partners LP (SXL) will be added to the Alerian Large Cap MLP Index (ALCI).
Which means they aren't disposing of any units of Linn since an index is simply an index, like the the Dow 30.
An 'index' or what? A corporate tax format?
This makes a comparable relationship between oil, ngas, coal, timber, pipes and processing?
Further as the Partnership format was limited closely to developing domestic resources it certainly is no index reflecting the broader economy.
But I am sure the OLB will continue to chatter up a marketing tool. Just is the Lisxa and the cult of backfitting returns for future riches insisted the puffing of a financial product saleman was secular gospel.
NO Just common sense allowed in this weird cult religion. Nor can any other American exceed the technical abilities of the appointed high priest of this cult. All Progressive collectivist.