This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Special Energy Funds Triple Treasury Yields

Stocks in this article: CEM NTG FMO

The closed-end funds issue limited numbers of shares that trade on stock exchanges. Lately, the shares have been trading at premiums to the value of the assets in the fund portfolios. For example, Fiduciary/Claymore MLP Opportunity Fund (FMO) sells at a 10% premium. So investors must pay about $1.10 for a dollar's worth of assets.

To avoid the premiums, consider one of three open-end mutual funds launched in March by SteelPath Fund Advisors. SteelPath MLP Select 40 has a distribution yield of 6.6% and holds a cross-section of 40 MLPs. The fund aims to provide broad exposure to the industry. Investors seeking extra income can consider SteelPath MLP Income Fund, which yields 7.6% and focuses on large MLPs with high payouts. SteelPath MLP Alpha yields 6.6% and aims to hold undervalued securities that can deliver above-average total returns.

SteelPath portfolio manager Gabriel Hammond particularly likes MLPs that can grow through construction or increased traffic. A favorite holding is Holly Energy Partners (HEP), which operates pipelines that transport gasoline, jet fuel and heating oil in the Southwest. "The company can expand because demand in its territory is increasing," Hammond says.

He also likes Inergy (NRGY), which stores natural gas near New York City. Demand for the partnership is strong because storage facilities are in short supply in the Northeast, Hammond says.

Readers Also Like:

Follow TheStreet.com on Twitter and become a fan on Facebook.

Stan Luxenberg is a freelance writer specializing in mutual funds and investing. He was executive editor of Individual Investor magazine.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs