Want to Invest in These Ultra-High-Yielding Energy Stocks Without The Tax Complications? Check Out This ETF.

Core Insights - Master limited partnerships (MLPs) provide significant yields, with Enterprise Products Partners yielding 6.7% and Energy Transfer yielding 7.4%, compared to the S&P 500's 1.1% dividend yield [1] Group 1: MLPs Overview - MLPs offer advantages such as high passive income but require investors to deal with Schedule K-1 tax forms, complicating tax filings [2] - The Alerian MLP ETF tracks the Alerian MLP Infrastructure Index, providing diversification across energy midstream sector MLPs and has an 8% distribution yield based on the last 12 months [4] Group 2: Alerian MLP ETF Details - The Alerian MLP ETF charges an expense ratio of 0.85%, which is higher than many oil stock ETFs, but offers tax simplicity by processing K-1s and providing a single Form 1099 to shareholders [5] - The fund's asset allocation includes 29.4% in petroleum pipeline transportation, 24.3% in natural gas pipeline transportation, and 21.1% in gas gathering and processing [7] Group 3: Top Holdings and Performance - The ETF has significant exposure to Energy Transfer, which constitutes 12.5% of its assets, and generates about 90% of its earnings from fee-based sources, ensuring stable cash flow for high-yield distributions [8]