MLPs ETFs

ETFs that focus on Master Limited Partnerships (MLPs) offer investors a convenient way to gain exposure to the energy infrastructure sector, primarily involving the transportation, storage, and processing of natural resources. These ETFs typically hold a diversified portfolio of MLPs, which are known for their potential to provide high income through distribution yields. Since MLPs often engage in oil and gas pipelines and other energy-related assets, the performance of these ETFs can be closely tied to the health of the energy market. Additionally, MLP-focused ETFs may offer tax benefits, as they are structured to pass through income to investors, which can help avoid the corporate income tax level. However, investors should be aware of the sector-specific risks and the tax implications unique to MLP investments.