First Trust North American Energy Infrastructure Fund

Sunoco Logistics has the lowest profit margin and ROE among its peers. Its profit margin and ROE of 1.6% and 1.7%, respectively, are well below the group average.

Most MLPs operate in the midstream energy industry. They’re mainly involved in gathering, processing, storing, and transporting energy commodities.

ONEOK Partners’ (OKS) natural gas pipelines segment owns and operates regulated interstate and intrastate natural gas pipelines and natural gas storage facilities.

TransCanada Corporation (TRP) is based in Canada. It’s one of North America’s leading natural gas pipeline network owners. TransCanada also provides natural gas storage services.

Regency Energy Partners L.P. (RGP) is a midstream operator of natural gas pipelines, gathering systems, and processing facilities.

Earlier this year, ONEOK (OKE) created a new stand-alone publicly traded company called ONE Gas (OGS), separating its natural gas distribution business into a separate dedicated company. The company believes that by having two separate companies, each of the companies will have a greater focus on its individual strategy, financial strength, and growth potential.

ONEOK Partners’ (OKS) natural gas liquids segment provides natural gas liquid gathering, fractionation, transportation, marketing, and storage services to its producers.

PAA’s storage facility falls under its supply and logistics segment, which is primarily a margin based segment, which makes it more volatile.

Before moving to inverse and leveraged ETFs in the next part of this series, we’d like to quickly discuss the differences between ETFs and mutual funds.

Magellan Midstream Partners L.P. (MMP), is a master limited partnership (or MLP) that owns and operates a diversified portfolio of energy infrastructure assets.

The First Trust North American Energy Infrastructure Fund (EMLP) generated total returns of 42% over a five-year period, the highest among the top five MLP ETFs that we are discussing in this series.

After three weeks of negative flows, the Alerian MLP ETF (AMLP) witnessed a net inflow of $5.6 million for the week ended June 23, 2017.

Generally, MLPs with stable earnings target a distribution coverage ratio in the range of 1 to 1.1 times the distributable cash flow.

MLPs are engaged in the production, transportation, storage, and processing of natural resources like oil, natural gas, and NGLs. They’re public companies.

The Clifton Ridge crude system is made up of three pipelines and two terminals. It supports the Lake Charles refinery in Westlake, Louisiana.

While actively managed ETFs are more expensive than passively managed ETFs, they tend to be less expensive than mutual funds due to structural differences between these two products. In the case of mutual funds, the investor interacts with the company while buying and selling mutual fund units.