Among MLPs, MLPX Is The Most Promising Candidate Going Forward
It's impossible not to notice the surge in oil market volatility, as signaled by the spike in the OVX. Although MLPX has a high standard deviation, its holding distribution is, in my view, less exposed to this risk compared to its competitors. Considering its competitive dividend, I believe it could offer alpha in the MLP market over the next quarter.
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MLPX: No Longer A Bargain, Technicals Also Suggest Caution (Rating Downgrade)
Traditional oil majors have underperformed, while MLPX has delivered a 27% return over the past year, outperforming the S&P 500 and XLE. MLPX invests in midstream infrastructure entities, offering high yields and avoiding fund-level taxes, but its valuation has become stretched. Despite strong seasonal trends, technical indicators suggest a consolidation phase, with resistance around $62 and potential support from dip buyers.
MLPX: Great Fund, Not So Great Price
MLPX is a simple midstream energy index ETF. The ETF has significantly outperformed these past few years, with its share price skyrocketing over 40% these past twelve months. Such a sharp price movement means the fund is much more expensive than before, and lower-yielding.
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MLPX: Political And Economic Trends Are Aligned For A Bull Run
The Global X MLP & Energy Infrastructure ETF mitigates risks of individual MLP investments, offering high dividends and strong returns, outperforming the Alerian MLP Index. Economic trends and increased natural gas demand, driven by AI data centers and popular energy needs, support a bullish outlook for MLPX through 2025. Political catalysts, including Trump's energy policies like lower regulatory barriers and enhanced access to federal land, benefit midstream companies like those in MLPX, enhancing growth prospects.
MLPX: Understanding Opportunities And Risk With Trump
The Global X MLP & Energy Infrastructure ETF offers high income potential through investments in midstream infrastructure assets. Although President Trump may try to boost oil production, his policies are unlikely to succeed amidst stagnant global oil demand. Investors also need to be mindful of his tariff plans. With sector valuations near full value, I do not see much upside in midstream assets and rate the MLPX as a hold.
MLPX: Providing Flowing Opportunities In Energy Infrastructure And Midstream Activity
The energy sector had started 2024 on a strong note, however year-to-date performance has slowed down to 4%. MLP & Energy Infrastructure ETF provides investors with broad exposure to MLP companies operating midstream pipeline assets. Energy infrastructure continues to witness positive demand despite a push of green policies and steady rise of renewables.
MLPX: Recent Developments
MLPX has seen strong capital gains, outperforming the S&P 500 and benchmark energy ETFs. The fund's dividend growth has been consistent and strong, with a 4.7% dividend yield, and 5.6% SEC yield. MLPX has shown significant total returns, outperforming the S&P 500 and broader energy indexes, albeit with significant volatility.
Comparing Energy Infrastructure ETFs: MLPX vs ENFR
Investors in energy infrastructure ETFs may be drawn to funds with larger asset bases, but it's important to also consider other factors such as cost and returns. The Global X MLP & Energy Infrastructure ETF (MLPX) and the Alerian Energy Infrastructure ETF (ENFR) are RIC-compliant energy infrastructure ETFs.
MLPX: The Energy Handwriting Is On The Wall, Buy Infrastructure
North American oil and gas infrastructure companies, like pipeline and storage facility owners, are in the catbird seat. It does not matter to these companies what the price of oil and gas is; their profits derive from the volume passing through, not price. OPEC's and Russia's reduction of output make this a perfect time to own these fine North American (mostly U.S.) companies via Global X MLP & Energy Infrastructure ETF.
MLPX: Outperformance From MLPs Continues, Still An Attractive Valuation
MLPX is close to all-time highs, outperforming energy equities like XLE, while the price of Brent holds under $80 per barrel. MLPX invests in midstream infrastructure entities, offering high yield and diversification benefits, which are often less correlated to the price of WTI versus oil & gas stocks. Despite a concentrated portfolio and weak seasonality ahead, MLPX's technical situation is healthy with potential for new highs, while its P/E multiple is attractive.
