the 12.5% of MacroShares Major Metro Housing, the former record holder of the most outrageous expense ratio. The Alerian MLP ETF has a stated objective: "The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the Alerian MLP Infrastructure Index." The following five data points are taken directly from the performance page of the AMLP Website :
- Total Operating Expenses 0.85%
- Alerian MLP ETF gain for September = +3.42%
- Alerian MLP Infrastructure Index gain for September = +5.70%
- Alerian MLP ETF gain for October = +3.17%
- Alerian MLP Infrastructure Index gain for October = +4.99%
The closest I could find is "As a result, the Fund's after tax performance could differ significantly from the Index even if the pretax performance of the Fund and the performance of the Index are closely correlated." Sure seems a little obtuse to me. It's time that shareholders are told the truth. They need to know that the expense ratio is nowhere close to being 0.85%, even if that additional 37.5% goes to Uncle Sam. They need to be told why. They need to know that AMLP is not a tax efficient investment because shareholders are paying those 35% corporate taxes. They need to have the outrageous "1 and 37″ fee and expense structure explained to them. Disclosure for this article: At the time of publication Ron Rowland had no positions in any of the securities, companies, or ETF sponsors mentioned, and receives no income, revenue, or other compensation (either directly or indirectly) from, or on behalf of, any of the companies or ETF sponsors mentioned.