KMP & KMR should benefit from new ETF, everything else equal
Medium- and long-term prospects for Kinder Morgan and other MLPs are likely improved, everything else equal, by the news of a new ETF being formed. Here is an excerpt of the news from ETF Trends, as published yesterday through Yahoo Finance's website: "According to a recent Securities and Exchange Commission exemptive relief filing , Exchange Traded Concepts will help money managers Yorkville ETF Advisors market the new Yorkville High Income MLP ETF . The new fund will invest in MLPs engaged in oil exploration and production, natural gas exploration and production; the sale, marketing, extraction and transportation of other resources." This should increase demand, everything else equal, for KMR, KMP, and other master limited partnership securities.
If you have enough money to buy AMLP's top ten holdings individually, you will be better off. AMLP will always vastly underperform its index because of its structure: the ETF itself pays taxes on distributions. AMJ is better in this regard but comes with its own problems (issuer risk).