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Fund Focus

Dividends and the Exchange-Traded Fund

By Roger S. Conrad, on May. 17, 2014

C-Tracks ETNs Based on Performance of the Miller/Howard MLP Fundamental Index (NYSE: MLPC)

This ETN launched in September 2013 but has topped the Alerian MLP Index’s total return by an almost 2-to-1 margin in its brief existence.

This smart ETN follows a proprietary index that tracks one of the strategies that Miller/Howard Investment uses for its big-money clients.

This proprietary index comprises 25 stocks that meet MHI’s criteria for distribution growth, payout coverage and projected capital spending, which management believes is the best gauge of future distribution growth.

The result is an ETN that always owns the MLPs that management deems the best and jettisons names that don’t measure up.

Miller/Howard Investment has a strong long-term track record of running income-oriented investment portfolios, suggesting that the newly launched ETN should continue to deliver differentiated returns.

We still prefer picking our own MLPs. But for investors who want diversified exposure to MLPs, this is the best choice. 

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