Midstream ETFs have recorded consistently strong flows in 2026. The segment has a track record of generating attractive income for investors.
Key Takeaways
- The Alerian MLP ETF (AMLP ) and the Alerian Energy Infrastructure ETF (ENFR ) gathered $1 billion and $134 million in net inflows year to date through September 23.
- AMLP’s underlying index (AMZI) yields 6.7% and ENFR’s underlying index (AMEI) yields 4.4% as of September 23, supported by stable, fee-based business models.
- Midstream funds have delivered robust year-to-date returns, with AMLP up 20.7% and ENFR up 25.3% on a total return basis through September 23, easily outpacing the S&P 500’s 13.5% gain over the same period.
Midstream ETFs Offer Generous Yields & High Return Potential
The Alerian MLP ETF (AMLP ) and the Alerian Energy Infrastructure ETF (ENFR ) have seen $1 billion and $134 million in net flows year to date through September 23, respectively. In the past three months, AMLP has garnered $446 million in net flows while ENFR has attracted $72 million.
AMLP has over $13 billion in assets under management, making it the largest MLP ETF and the second-largest energy ETF by assets after the Energy Select Sector SPDR Fund (XLE ). ENFR has $538 million in assets and is the lowest-cost ETF in the midstream category.
AMLP’s underlying index, the Alerian MLP Infrastructure Index (AMZI), is yielding 6.7% as of September 23. Meanwhile, ENFR’s underlying index, the Alerian Midstream Energy Select Index (AMEI), is yielding 4.4%.
Midstream ETFs appeal to many investors for their history of delivering compelling income and returns. Midstream can offer generous income regardless of the interest rate environment, and AMLP and ENFR are currently providing higher dividend yields than the broader energy sector and other income-oriented equity investments like REITs and utilities.
Additionally, these companies operate under long-term, fee-based business models that generate steady cash flows. The midstream segment is less sensitive to commodity price fluctuations than other energy subsectors.
Midstream ETFs Outperform Broader Market Year to Date
The midstream segment has performed well this year despite broader market and oil price volatility. Midstream companies are benefitting from an improved outlook for U.S. energy production. This stems from given stronger oil prices and robust expectations for natural gas demand growth.
AMLP and ENFR are up 20.7% and 25.3% on a total-return basis year to date through September 23. For comparison, the S&P 500 (as measured by the State Street SPDR S&P 500 ETF (SPY )) is up 13.5% and the underlying index for the State Street Energy Select Sector SPDR ETF (XLE), a measure of the broader energy sector, is up 42.2% during the same period.
Looking for midstream insights in your inbox? Subscribe here to keep a pulse on midstream investing through our weekly updates.
For more news, information, and analysis, visit the Energy Infrastructure Content Hub.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP, and ENFR for which it receives an index licensing fee. However, AMLP, and ENFR is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP, and ENFR.
