Unloved Pipeline ETFs Find Buyers Again After Big Buyout
- Bets on MLP funds rise following news of $27.5 billion deal
- Alerian ETF has first inflows since June, Global X fund active
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Investors rushed back into the world’s largest exchange-traded fund tracking the pipeline industry following the announcement on Aug. 1 that Energy Transfer Equity LP, the parent of Kelcy Warren’s U.S. empire, was buying out sister company Energy Transfer Partners LP for $27.5 billion.
The $10.4 billion Alerian MLP ETF, known by its ticker AMLP, took in almost $36 million on Thursday, its first inflows since June. The fund tracks master limited partnerships, which combine the tax treatment of a partnership with a publicly traded firm. They’re particularly popular in cash-intensive businesses, like pipelines.