What are MLPs?
Master Limited Partnerships are publicly-listed limited partnerships that trade on a securities exchange and are primarily focused on natural resource-related activities, including oil, gas, coal, timber, and commodity transportation. An MLP is comprised of two types of partners:
- General partners who manage an MLP's day-to-day operations and administration.
- Limited partners (investors) who provide capital to the MLP by purchasing units (or shares) in the partnership, entitling them to periodic income distributions from the entity's operations.
How do I invest in MLPs at Schwab?
You can buy and sell MLPs on your own with a Schwab One® Brokerage Account or access MLPs through one of Schwab's managed portfolio solutions. Remember, different asset classes can fill multiple roles in a portfolio. Carefully consider how MLPs can fit into your asset allocation model.