So if I understand correctly, AMJ is a better investment for my tax-deferred 401K as compared to AMLP or an individual MLP?
Looks like I get a broad exposure to the best MLP's and would receive tax-deferred, high yield growth in my retirement account. Sounds like a good investment as long as JP Morgan doesn't go under.
I can not believe one would give up the gains of AMJ vrs AMLP based on the JPM note. I have sold my AMLP. If AMJ returns 15% the next ten years and AMLP returns 10%(reasonable estimates). $100,000 invested in AMLP will be worth $259,274. $100,000 invested in AMJ will be worth $404,555. $304,000 profit vrs $159,000. JPM would have to go bankrupt, even then I am not sure AMJ would go to zero. JPM very well run and biggest investment company in the country along with GS. To big to fail.
Another thing, the security is totally uninsured. Want that risk for a 32% outperform until blammo? The notes also have an expiration date though a long time from now. AMJ is another crazy JP Morgan invention where that kind of inventing got them into so much trouble in the first place IBET THEY ARE SHORTING IT AS I WRITE!!!!!!!!!!!!!
we having fun yet? AMLP seems more appropriate for my taste. If it is more conservative than others, thats fine. It already has enough risk of its own. AMLP has a slow uptick, and that's ok. We'll see if it just tracks the DOW, as the DOW has kept going higher... so has AMLP. Also, a positive is that folks are more and more accepting exposure to MLP's... so AMLP makes sense.
Good luck to us all,
Article under yahoo "dirty secrets" explains why this etf will always underperform amj, by 32.5%. That is exactly what is happenning. I bought a thousand shares of AMLP and have been comparing it to my very large holdings in AMJ. It is underperforming by approxoimately 32.5% Dumb to buy AMLP.
AMJ was issued about ,what , 9 months ago ? AMLP was issued in AUG . MLPs have skyrocketed from a year ago . That's why AMJ has outperformed AMLP.It's been around alot longer and has had capital appreciation along with a lack of high yielding alternatives . But don't count out AMLP. As time goes on MLPs increase the payouts, and that also can make the the ETF go up(as the payouts from the fund increase).This comparison isn't fair since AMJ has been around alot longer . BOTH FUNDS HOLD EXACTLY THE SAME MLPs ,SINCE THEY TRACK THE SAME EXACT INDEX.