On June 1, 2006, Alerian launched the first real-time index to track MLP performance, the Alerian MLP Index (AMZ), which today remains the leading gauge of energy MLPs. The 50 constituents in the float-adjusted, capitalization-weighted index capture approximately 75% of total energy MLP market capitalization.
Fun AMZ Facts:
- In 2006, the 50 names in the AMZ had a combined market capitalization of $102 billion. Today, the combined market capitalization is $363 billion.
- Of the 50 companies in the AMZ in June 2006, 23 of those names are index constituents today.
- What happened to the other 27 names?
•14 are no longer in existence due to M&A
•6 are still in existence, but were removed in the course of rebalancing
•5 are no longer eligible due to changes in methodology
•1 went private
•1 filed for bankruptcy
- Since 2006, EPD, WPZ, ETP, and MWE have each seen their index weighting increase by at least 4%. A chart of the 10 companies with the highest weight increase is below:
- If AMZ had a baby book, this would be page three: