Sell AMLP, Buy These ETFs Instead: Why It Matters for Your Portfolio
Overview of AMLP and Its Performance
The Alerian MLP ETF stands as a giant among midstream energy ETFs, attracting considerable attention from investors. However, recent performance metrics have raised questions about its sustainability. Instead of retaining your investments in AMLP, a strategic shift towards other ETFs may yield better results.
Why Buy Alternatives to AMLP?
Investing in acceptable ETFs can provide increased exposure to energy markets while mitigating risks associated with AMLP. Consider these advantages:
- Lower Fees: Many alternatives offer reduced expense ratios.
- Diversification Benefits: Other ETFs can spread risk across a broader range of investments.
- Performance Potential: Some ETFs have demonstrated better returns over recent years.
Recommended ETFs to Consider
- Energy Select Sector SPDR Fund (XLE): A well-rounded energy sector play.
- Vanguard Energy ETF (VDE): Offers diverse investment in energy companies across the board.
- Invesco S&P 500 Equal Weight Energy ETF (RYE): Provides an equal weighting to smaller firms.
By diverting investments from AMLP to these suggested ETFs, investors can position themselves for improved growth opportunities.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.