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ETFs for Yield: Master Limited Partnerships and ‘Dividend Dogs’


Investors frustrated with low interest rates have turned to the equities market for yield, specifically master limited partnerships and dividend stocks, according to an ETF manager.

ETF Trends editor Tom Lydon sits down with Jeremy Held, Senior Vice President/Director of Research at ALPS Fund Services, to discuss the firm’s lineup of ETFs.

ALPS specializes in satellite and alternative investment strategies that can diversify core equity and fixed-income portfolios, Held explains.

“We partner with people in the commodity space, private equity, master limited partnerships, emerging markets and global real estate,” he tells Lydon.

Within equities, investors have been gravitating to master limited partnerships with products such as the Alerian MLP ETF (AMLP) for income, Held said.

MLPs include pipeline companies that transport crude oil and natural gas. The yield is very stable and the sector historically generates 6% to 7% cash flow yields, while the MLP business has grown tenfold over the past ten years, he added.

The firm also offers ALPS Sector Dividend Dogs ETF (SDOG) for yield-hungry investors.

Watch the video for the full interview.

Full disclosure: Tom Lydon’s clients own AMLP.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.