Energy Policy Shift Could Make ENFR Excellent Again

Domestic oil saw elevated production under the prior administration. However, one of the cornerstones of President Trump’s 2024 campaign was unleashing U.S. oil and gas output. That effort would seek to make this country energy independent and one of the world’s dominant energy exporters. Making good on promises to attempt to boost U.S. energy production, he signed related executive orders on his first day in office. Some market observers believe those moves could have profound implications for the energy sector and assets like the Alerian Energy Infrastructure ETF (ENFR). On his first day in office, Trump declared a national energy emergency.

The ALPS exchange traded fund is up nearly 4% over the past month. This perhaps reflects reflecting some of the optimism around Trump’s domestic energy ambitions. That may signal expectations that ENFR, which follows the Alerian Midstream Energy Select Index, could benefit from a potential U.S. energy renaissance.

ENFR Could See Near-Term Benefits

Projecting the near-term extent to which energy infrastructure stocks, including ENFR holdings, will benefit from Trump policy is difficult. However, experts clearly view the group as a potential Trump Administration winner.

“Companies involved in oil and gas exploration, extraction, and infrastructure stand to gain as regulatory barriers are dismantled and investment in domestic production soars,” noted deVere Group CEO Nigel Green. “Shares of US energy giants and mid-cap firms are likely poised for significant upward momentum as the markets price in increased output and profitability.”

ENFR’s status as an income-driven play on companies focusing on the storage and transportation of fossil fuels could appeal in the current environment. That’s because the Organization of Petroleum Exporting Countries (OPEC) may meet Trump’s policies with resistance. This could spark an oil price war that would stoke elevated volatility among traditional energy stocks.

“While increased US production may initially suppress prices, the broader implications—including shifts in OPEC strategies and trade balances—could lead to heightened volatility. This creates both opportunities and risks, particularly in commodities and energy-linked equities,” added Green.

An ENFR Selling Point

Energy infrastructure and midstream equities are typically less volatile than exploration, production, and integrated oil peers. That could be a selling point for ENFR. That’s because market participants assess smoother avenues for playing a potential new era for domestic energy output.

“With significant policy shifts on the horizon, the potential for growth is extraordinary. But so is the need for strategic action. Investors must act decisively, leveraging these developments to position themselves for what promises to be a transformative era,” concluded Green.

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