There are 4 closed-end mutual funds focusing on energy MLPs that are trading at 22-23% discounts. I am looking to reduce positions in certain industries, like banks, that grown to a percentage of my portfolios that I would like to reduce. One problem is where to put the money. These MLP funds look attractive at first glance due to the discount to NAV and the fact that energy seems to be rebounding, at least for now. I have heard that these funds avoid the hassle of K-1's and the expense of UTBI. Any thoughts?
Which are those 4?
Many people frown on the closed-end muntual funds focusing on energy MLPs because they use leverage. You might check their record for this year.If you want to invest in MLPs without the hassle of K-1s you might look at two MLP ETFs. I have AMLP and USAI. USAI is a very small ETF which has done, IMHO, very well since I bought it. It is quirky; I think of it as a mutual fund masquerading an ETF.Do your own DDklee12
Yes they are all leveraged, but that does not bother me much. The leverage is typically 19% to 34%. At my first glance through them I was looking at the listed management fee, but overlooked the higher total expense ratio. The expense ratio is just too high more me. For kingrans questions. There are actually five and they are:1. SMM -23.12%2. CEN -22.84%.3. SRV -22.64%4. NML -22.50%5. NTG -22.16klee12, half of my attraction to these is the discount to NAV, but not with those expense ratios.
I feel with an ETF you get some of the dogs with it. k'1 are not all that hard to do especially if you got turbotax. holding pbfx, lmrk, shlx and mplx. if I don't like their reports I can then dump them at my discretion not theirs.
Tried turbotax for many years and at first it did a good job. Then I retired from the Army and had to go back to filing state tax returns and my federal taxes became more complicated.After 3-4 straight years of turbotax making 2-3 mistakes most years on my state tax returns and NEVER getting my foreign tax credit correct on my federal return I just gave up on it.
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