Nonetheless, diversity is no small consideration when it comes to oil and gas investments.
"People forget that these are exchange-traded investments," says Willoughby. "Just like oil and gas stocks, these investments are volatile."
At the least, if you're invested in MLPs, be sure the rest of your portfolio doesn't have too much exposure to energy investments.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts