“Growing US energy production increases demand for energy infrastructure assets and creates growth opportunities for the MLP and midstream space, including projects to support energy exports. Investors looking for access to midstream assets in a diversified Fund may be interested in energy infrastructure ETFs,” Jeremy Held, Senior Vice President and Director of Research at ALPS Advisors, said in a note.
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For example, the ALPS Alerian MLP ETF (NYSEArca: AMLP) provides diversified, transparent exposure to a basket of infrastructure MLPs. Through something like AMLP, “investors have exposure to the continued buildout of energy infrastructure required to facilitate this growing US energy production,” Held added.
Gathering & Processing companies, which are crucial to the continued growth in NGL production, make up 24.3% of the Alerian MLP Infrastructure index, the underlying benchmark for AMLP, as of the end of September. Pipeline Transportation and Natural Gas names represented 28.4% of the index and also have leverage to growing NGL production.
For more information on master limited partnerships, visit our MLPs category.