Menu Close

ALPS’ Energy ETFs Poised for a Q4 Comeback

Don’t call it a comeback quite yet, but there are incremental signs pipeline assets, including the Alerian Energy Infrastructure ETF (ENFR), are perking up.


ENFR tracks the Alerian Midstream Energy Select Index (CME: AMEI). ENFR acts as a type of hybrid energy infrastructure ETF, which could help investors capture some of the high yields from MLPs while limiting the tax hit from solely owning MLPs.


Part of the steadiness attributable to some ENFR components are plans to keep spending and growth plans subdued in the new year.


“Kinder Morgan Inc., Enterprise Products Partners LP and Energy Transfer LP were among the midstream companies that expressed a desire to maintain cost efficiency, at least until the market further stabilizes. Record daily coronavirus cases in the U.S. could cause demand to pull back again, something the operators are watching for carefully,” according to S&P Global Market Intelligence.


Reasons to Believe for Midstream Operators

Some analysts argue the worst of the coronavirus pandemic impact on midstream operators, ENFR’s area of emphasis, is behind the group, perhaps setting the stage for a rebound as the economy steadies and oil demand bounces back.


ENFR YTD Performance


MLPs don’t make their money based on oil or gas prices. Unlike other energy sector stocks, they deal primarily with the distribution and storage of energy products, so their business model is less reliant on the commodities market since they profit off of the quantity of oil and natural gas they are able to move around.


Integral to the ENFR thesis is how rapidly midstream management teams are responding to headwinds presented by the coronavirus pandemic. Fortunately, many are proving adept at dealing with a challenging operating environment.


“We were impressed how quickly [management]teams ‘got’ it,” according to UBS. “Within two quarters since the onset of [COVID-19], capex came down, there was a real hard focus on costs and a slew of buyback authorizations … clearly [management]is listening to investors and attempting to deliver.”


Other MLP funds include the Global X MLP ETF (NYSEArca: MLPA) and the JPMorgan Alerian MLP Index ETN (NYSEArca: AMJ).


View: Source

View: More news

Related Posts


  1. gamefly the

    I was suggested this blog by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my difficulty.
    You are incredible! Thanks!

  2. when asmr

    I really like what you guys are usually
    up too. Such clever work and reporting! Keep up the wonderful works guys I’ve added you guys to my
    personal blogroll.

  3. or asmr

    I really like your blog.. very nice colors & theme. Did you design this website yourself or did you
    hire someone to do it for you? Plz respond as I’m looking to design my own blog
    and would like to find out where u got this from.

    many thanks

  4. with gamefly

    I would like to thank you for the efforts you have put in penning this site.

    I am hoping to check out the same high-grade blog posts from you later on as
    well. In truth, your creative writing abilities has motivated
    me to get my own website now 😉

  5. asmr was

    Hey there! I’ve been reading your web site for some time
    now and finally got the courage to go ahead and give you a
    shout out from Atascocita Tx! Just wanted to say keep up
    the great work!

  6. asmr or

    What i don’t realize is in reality how you’re not really a lot more neatly-preferred than you might be right now.
    You are so intelligent. You recognize therefore significantly in terms of this matter,
    made me in my opinion consider it from a lot of numerous angles.
    Its like men and women aren’t fascinated except it’s something
    to accomplish with Girl gaga! Your individual stuffs outstanding.
    All the time care for it up!

  7. when asmr

    Simply desire to say your article is as surprising.
    The clearness on your put up is just nice and i can assume you are an expert in this subject.
    Fine along with your permission allow me to grab your feed to keep up to date with drawing close post.
    Thank you a million and please continue the gratifying work.

Leave a Reply

Your email address will not be published.