http://www.infracapmlp.com - The Alerian MLP ETF (AMLP) lost 1.75% in the week ending June 5. This ETF tracks an index of 25 midstream MLPs (master limited partnerships) including Magellan Midstream Partners (MMP), MarkWest Energy Partners (MWE), and Energy Transfer Partners (ETP). These three companies together account for ~17% of AMLP.

1. Things Didn’t Look Good for the Alerian MLP ETF (AMLP) Last Week
The Alerian MLP ETF (AMLP) lost 1.75% in the week ending June 5. This ETF tracks an index
of 25 midstream MLPs (master limited partnerships) including Magellan Midstream Partners
(MMP), MarkWest Energy Partners (MWE), and Energy Transfer Partners (ETP). These three
companies together account for ~17% of AMLP.
MLPs are special companies that pay most of their earnings as distributions to unitholders. To
understand MLPs better, check out our primer on MLPs.
AMLP is an easy way for investors to gain low-cost, diversified exposure to the midstream
sector. Midstream companies help transport, process, and store energy.
Comparing performances
Weak energy prices seem to have had a more pronounced effect on AMLP than they did on the
SPDR S&P Oil & Gas Exploration & Production ETF (XOP) or the Energy Select Sector SPDR
Fund (XLE) last week. You should note that some of the companies held by AMLP get paid in
kind. As a result, these companies are exposed to movements in commodity prices.

2. The United States Oil Fund (USO) lost 2%, and the United States Natural Gas Fund (UNG) lost
~2.6% during the week. Both of these commodity ETFs track price movements in prompt futures
for crude oil and natural gas that are traded on the NYMEX (New York Mercantile Exchange).
With many investments in integrated and large energy companies, XLE lost 0.92%, while the
upstream-company-heavy XOP was practically unchanged in the week ending June 5. The
oilfield services and equipment ETF—the Market Vectors Oil Services ETF (OIH)—was the
outperformer in our energy ETFs group, gaining 1.2%.
In the broad market, the SPDR S&P 500 ETF Trust (SPY) lost 0.77% last week.
Because MLPs are typically bought for their regular distribution-based income, MLP units are
also affected by movements in the interest rate markets. Check out our coverage on the sector by
visiting our Fixed Income ETFs page.
About AMLP
AMLP holds midstream MLP companies whose earnings are typically linked to the volumes of
energy products they transport. Plus, many of them enter into long-term fixed-fee contracts with
their customers. This makes them relatively more resilient to slumps in energy prices than their
upstream, services, or even integrated peers.
Usually, AMLP is among the safer bets for investors that want to play energy prices. For more
on this topic, read What you need to know about investing in the Alerian MLP Index.