This may be a silly question but I have noticed almost all filters that are created for "equities you should not trade" include filtering out all LPs (limited partnerships).
What is the reasoning behind this?
This is probably just an artifact of people cutting and pasting some code I posted months ago where I was researching replicating some popular indices which themselves excluded resource pass-throughs and other tax-mitigating partnership structures; those indices were targeting only proper regular C-corps with LLC structures.
I don't think there's any particular reason you shouldn't trade them per se, but you maybe want to be aware of the personal tax implications of owning them. In particular, during that period, I was trying in vain to filter out partnerships which distributed "unrelated business income" as well, but that seemed to be impossible to determine from the Morningstar data. If you care enough, you might also want to personally avoid ETPs which physically trade futures, as you then might get K-1 forms at the end of the year, if you are in the US. I don't know how you can exclude them programmatically though.
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