Maybe it's the various funds broadcasting that "it's not so hard" to get the MLP into an IRA, but I am seeing more of those pseudo-articles out there. As you noted, why add more layers of complication to an investment (or retirement acct)? I think there's a place for MLPs in my portfolio...but I'll stick with normal investment method.
And thanks for spelling out the other details (ETNs, EFTs). For anyone interested, MLPs can offer a lot of upside, but they are complicated.
Here’s something to NB as well:
If your broker gives you the stats, check out the “institutional ownership” of MLP’s when you bring them up on your research screen. You’ll see that it is very low. Lemme pull one up:
KMP, Kinder-Morgan. One of the biggest mid-stream MLP’s out there.... has 11% institutional ownership.
Another one, SPH, Suburban Propane, has only 15%.
Both have been around a long time, both have really solid yields, both of them would be great to hold in a IRA/401(k) but for that tax issue.
Where is most of the “institutional” money? IRA’s, 401(k)’s and other retirement plans. Most mutual funds who want to be owned/bought by this money will not buy these shares because of the tax complications for the fund and the buyers of the fund.