Midstream ETFs held steady through August as the rest of the market faltered following a strong rebound in July.
The $130 million Alerian Energy Infrastructure ETF (ENFR) has been accreting assets at a steady pace this year, taking in $8 million in net inflows during August. The fund saw $4 million in July and $8 million in June inflows, with year to date flows totaling $54 million, according to VettaFi.
ENFR provides exposure to the Alerian Midstream Energy Select Index (AMEI), a composite of North American energy infrastructure companies. AMEI was yielding 5.87% and was up 22.04% year-to-date on a total-return basis as of the end of August. Even with notable gains this year, AMEI is currently trading at a modest discount to its 3-year average forward EV/EBITDA multiple, encouraging investors to continue to allocate money to ENFR.
AMEI was essentially flat in August, returning 0.10% on a total-return basis, outperforming the S&P 500, which saw a 4.08% decline on a total-return basis. While WTI oil prices fell by 9.20% during the month, energy stocks were supported by a constructive earnings season, steady dividends, and strength in natural gas prices.
Natural gas prices hit a multi-year high during the month but finished August up 10.91% after retracing into the end of the month.
The last of midstream’s earnings reports wrapped up in early August, and the segment overall posted strong results. Many midstream names beat consensus expectations or raised full-year financial guidance.
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vettafi.com is owned by VettaFi, which also owns the index provider for ENFR. VettaFi is not the sponsor of ENFR, but VettaFi’s affiliate receives an index licensing fee from the ETF sponsor.