Searching for income? Energy infrastructure companies, particularly those in the midstream sector, can offer investors attractive yields and total return potential, especially given a constructive market outlook for 2022 and beyond.
In the upcoming webcast, Energy Infrastructure 2022 Outlook: Inflation and Income Opportunities, Stacey Morris, director of research, Alerian and S-Network Global Indexes; and Danny Schwab, senior investment strategy advisor, SS&C ALPS Advisors, will look at what’s in store for the energy infrastructure sector in 2022, as well as how investors can enhance their investment portfolios with midstream energy exposure.
For example, investors can look to something like the Alerian MLP ETF (AMLP), which offers exposure to major midstream energy companies that provide robust cash flow and increasing payouts to shareholders and currently yields nearly 9%. The fund seeks to track the Alerian MLP Infrastructure Index, a rules-based index that is float-adjusted and modified cap-weighted.
The underlying index is comprised of energy infrastructure MLPs that derive most of their cash flow from the storage, transportation, and processing of energy commodities. AMLP invests at least 90% of its assets into the securities within the underlying index and is classified as a C-Corp for tax purposes, utilizing a 1099 for tax reporting.
Additionally, the Alerian Energy Infrastructure ETF (ENFR) tries to reflect the performance of the Alerian Midstream Energy Select Index, an index that includes a mix of North American midstream energy infrastructure companies, including U.S. and Canadian MLPs and corporations that are involved in the storage, pipeline transportation, and processing of energy commodities.
ENFR invests at least 90% of its assets in securities within the index, and it also cannot invest more than 25% of its assets into the securities of one or more publicly traded partnerships, including MLPs, per tax code.
Financial advisors who are interested in learning more about the energy infrastructure sector can register for the Wednesday, January 12 webcast here.