MLPG: Riding the MLP Popularity Wave

A little more than three months ago, at the end of March, only one exchange-traded product (ETP) focused on Master Limited Partnerships, or MLPs.  Now, with yesterday’s (7/14/10) introduction of UBS E-TRACS Alerian Natural Gas MLP Index ETN (MLPG), there are five such products.  A 400% increase in “selection” in less than four months, and more MLP products in the filing pipeline.  Are we getting frothy yet? The attraction is easy to see.  Most MLP indexes are yielding north of 6% while 5-year Treasury securities yield less than 2%.  The current yield on the SPDR S&P 500 (SPY) is about 2% also, and you have to wait a long time to get paid.  Additionally, the MLP indexes have been less volatile than the stock market in recent months. Income investors are…