This MLP Income ETF Quietly Pays Higher Yield Than AMLP Using a Covered Call Overlay
Key takeaways
- Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks.
- Master limited partnerships (MLPs) have long been favorites among income investors thanks to their pass-through structure and typically generous cash distributions.
- The biggest drawback to owning individual MLPs is the Schedule K-1.
This MLP Income ETF Quietly Pays Higher Yield Than AMLP Using a Covered Call Overlay Tony Dong Fri, July 3, 2026 at 11:04 PM GMT+7 5 min read AMLP Quick Read MLPI combines MLPs, pipeline corporations, and covered calls: Keeping MLP exposure below 25% preserves RIC status while the options overlay boosts portfolio income.
Most of the headline yield comes from options: The underlying portfolio yields about 3.44%, while the covered call strategy lifts the forward distribution rate to 14.76%, with much of the payout currently classified as return of capital.
Early performance has been encouraging: Although the ETF has a limited track record, MLPI has outperformed AMLP on a total return basis since launch while avoiding the tax drag that has historically contributed to AMLP's tracking error.