The Global X MLP ETF (NYSEARCA:MLPA) offers exposure to energy infrastructure through master limited partnerships and delivers an extremely high 7.2% dividend yield today.
Global X MLP ETF (MLPA) remains a buy despite lagging the S&P 500, offering a high 7.79% yield and attractive valuation. MLPA trades at just 10.75x earnings with a strong long-term EPS growth rate, resulting in a compelling PEG ratio below 1. The ETF is highly concentrated in Energy-sector MLPs, with the top 10 holdings making up over 90% of assets, posing some risk.
Global X MLP ETF offers income investors exposure to U.S. midstream energy infrastructure, focusing on volume-driven, contract-based cash flows, not oil price speculation. MLPA's 7.95% yield is supported by durable, inflation-linked distributions from irreplaceable pipeline assets, with 13 years of steady payouts and no leverage-enhanced risk. The ETF's C-Corp structure simplifies tax reporting, making it attractive for international investors and retirement accounts, though it can create short-term NAV drag during rallies.
| XBER Exchange | US Country |
The company is focused on investment in securities primarily within the Master Limited Partnership (MLP) asset class, specifically within the energy infrastructure domain in the United States. By allocating at least 80% of its total assets to the securities of its underlying index, and ensuring these securities match the economic characteristics of the MLP asset class, the company seeks to provide investors with an opportunity to track the performance of the energy infrastructure MLP asset class. The fund’s strategy emphasizes investments that align with the specific criteria of its underlying index, aiming for performance tracking and sector exposure. As a non-diverse fund, it dedicates a significant portion of its portfolio to a specific sector, potentially offering higher rewards alongside higher risks associated with less diversification.
This service involves allocating at least 80% of the fund's total assets to securities that exhibit the economic characteristics of the Master Limited Partnership (MLP) asset class. These securities are primarily within the energy infrastructure sector in the United States, allowing investors to gain exposure to this specific market segment.
The company offers a structured investment strategy that aims to track the performance of the energy infrastructure MLP asset class through a carefully selected underlying index. By investing in securities that are included in or have economic characteristics similar to those in the underlying index, the fund seeks to mirror the performance of the energy infrastructure MLP sector.