MLPX ETF

The Global X MLP & Energy Infrastructure ETF offers high income potential through investments in midstream infrastructure assets. Although President Trump may try to boost oil production, his policies are unlikely to succeed amidst stagnant global oil demand. Investors also need to be mindful of his tariff plans. With sector valuations near full value, I do not see much upside in midstream assets and rate the MLPX as a hold.

The energy sector had started 2024 on a strong note, however year-to-date performance has slowed down to 4%. MLP & Energy Infrastructure ETF provides investors with broad exposure to MLP companies operating midstream pipeline assets. Energy infrastructure continues to witness positive demand despite a push of green policies and steady rise of renewables.

MLPX has seen strong capital gains, outperforming the S&P 500 and benchmark energy ETFs. The fund's dividend growth has been consistent and strong, with a 4.7% dividend yield, and 5.6% SEC yield. MLPX has shown significant total returns, outperforming the S&P 500 and broader energy indexes, albeit with significant volatility.

Investors in energy infrastructure ETFs may be drawn to funds with larger asset bases, but it's important to also consider other factors such as cost and returns.  The Global X MLP & Energy Infrastructure ETF (MLPX) and the Alerian Energy Infrastructure ETF (ENFR) are RIC-compliant energy infrastructure ETFs.

North American oil and gas infrastructure companies, like pipeline and storage facility owners, are in the catbird seat. It does not matter to these companies what the price of oil and gas is; their profits derive from the volume passing through, not price. OPEC's and Russia's reduction of output make this a perfect time to own these fine North American (mostly U.S.) companies via Global X MLP & Energy Infrastructure ETF.

MLPX and XLE are two of the largest energy ETFs in the market. XLE offers diversified exposure to energy companies, while MLXP focuses on midstream. Both funds have above-average yields and cheap valuations, but differ in several key ways.

MLPX is an ETF that focuses on midstream energy infrastructure, offering potential yield and less sensitivity to volatile energy prices. The fund has 25 holdings, including key players in the midstream energy sector such as ONEOK, Cheniere Energy, and Enbridge. MLPX is heavily weighted towards the energy infrastructure sector, making it a potentially safer option for investors looking for exposure to the energy sector.

Global X MLP & Energy Infrastructure ETF offers diversified exposure to midstream corporations and MLPs. The MLPX ETF has a good, growing 5.2% dividend yield, comparatively safe midstream holdings, and a cheap price and valuation. An overview of the fund follows.

Global X MLP & Energy Infrastructure ETF focuses on midstream MLPs and energy infrastructure companies, providing exposure to the transportation, storage, and processing of energy resources. MLPX has a relatively concentrated portfolio with 27 holdings, including ONEOK, Cheniere Energy, Williams Companies, and Enbridge. MLPX has lagged behind the broader market in the past year but outperformed other energy sector ETFs such as XLE and EMLP. Its performance is heavily dependent on future oil prices.