Global X MLP ETF to be Added to the SMA Portfolio

By on December 7, 2015

The rout in the energy complex has decimated the energy MLP sector. I plan on initiating a portfolio allocation of 3% in the Global X MLP ETF (MLPA). This will be funded with available cash and a partial sale of the Vanguard Total Bond Market ETF (BND). I will be placing a buy limit order on MLPA near the day’s low. If the market cooperates MLPA will be purchased near an all-time low and approximately 50% lower than it traded at last year. Of course, this is no guarantee that MLPA won’t go lower. I purchased seemingly bargain priced stocks based on sales and book value last year with the idea they were close to a washout bottom, but several dropped up to 90% more in the following months. The market can sometimes be a cruel mistress.

Global X MLP ETF

Disclaimer: It is very difficult to outperform a buy and hold strategy. Many investors have found themselves well served over long time horizons by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Future performance may not reflect past performance. Profitable trades are not guaranteed. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

One Comment

  1. Barron Maestro

    December 7, 2015 at 3:39 pm

    The Global X MLP ETF (MLPA) was purchased at 2:12 EST at $8.69.

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