The Midstream: A Tax Efficient Income Superstar

In 2020, energy was just 2% of the S&P 500. It has been surging since, with some experts thinking it could reach 30% by 2025. But there’s more to energy than simple oil and gas. With its robust dividends and attractive tax position, the midstream space remains arcane to some investors. Energy infrastructure has several qualities that differentiate it from the rest of the energy universe. Understanding these nuances could matter greatly as energy narrows the gap with tech in terms of investment importance. 

For investors seeking reliable income, accessing a part of the market poised for growth – such as midstream – may offer a compelling option. Join VettaFi’s head of energy research, Stacey Morris, CFA, and the experts at ALPs as they unpack the midstream sector, clarify how MLPs work, and articulate an energy infrastructure strategy that could fuel a portfolio in these uncertain times. 

Morris is a frequent guest on Nate Geraci’s ETF Prime and a recognized voice in the energy field who contributes regular writing and research. To underscore the importance of the midstream space, Morris noted that “despite the macro volatility over the last week, the fundamental picture for midstream has not changed. Weak equity performance has reflected a risk-off environment as concerns about the global economy have weighed on energy commodities.” She added, “Importantly, MLPs and midstream have held up better than broad energy benchmarks and other energy subsectors over the last week, given midstream’s defensive qualities.” 

Learn why the midstream’s fee-based model and dividend potential make it well-positioned to navigate today’s challenging markets by joining Morris and Paul Baiocchi, Chief ETF Strategist at SS&C ALPS Advisors. VettaFi editor-in-chief Lara Crigger will moderate the conversation. 

Register to learn more about midstream/MLPs here.

For more news, information, and analysis, visit the Energy Infrastructure Channel.