Midstream continues to build on its reputation as a generous source of yield in portfolios. This week, two category-leading midstream ETFs – the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR) – declared distributions for the third quarter of 2026.
Alerian MLP ETF (AMLP) offers exposure to US midstream MLPs with a focus on high-yield dividends and sector tailwinds. AMLP's top six holdings comprise around 72% of the ETF, creating concentration risk but simplifying dividend collection for investors. Underlying companies have raised EBITDA guidance, and I expect dividend growth to accelerate if sector momentum persists.
Alerian MLP ETF is rated BUY, offering a 7.40% yield driven by robust midstream energy fundamentals, not reliant on imminent Fed rate cuts. AMLP's largest holdings—ET, WES, MPLX, and EPD—account for 51% of assets, delivering record volumes, EBITDA growth, and consistent distribution increases. Distribution has grown for four consecutive years, with recent operating momentum and project pipelines supporting moderate capital appreciation alongside income.
It's likely a good bet that the Federal Reserve will raise the federal funds rate by 25 basis points (1/4 of 1%) in September.
Looking beyond oil to a diversified mix of energy themes could offer more durable opportunities. Here are the ETFs to consider.
The midstream energy sector continues to demonstrate its commitment to returning capital to shareholders. Major energy infrastructure companies recently announced sequential increases in payouts during Q3 2026, bolstering income generation across the space.
If you own the Alerian MLP ETF (NYSEARCA:AMLP), you are paying both a fund manager and a corporate tax bill that the marketing materials rarely draw attention to.
The U.S. energy sector has outperformed in 2026, driven primarily by geopolitical-related supply fears, elevated oil prices, and rising demand from the AI infrastructure buildout. While broad energy funds have also surged, investors can potentially enhance exposure by targeting specific segments of the energy market.
Electrification ETFs, commodities, and the line between investing and speculation were at the center of this week's ETF Prime. Host Nate Geraci welcomed Paul Baiocchi, head of fund sales and strategy at SS&C ALPS Advisors, and Dave Nadig of ETF.com.
AI ETFs aren't the only strong names in the market, and many dividend ETFs are outperforming most tech stocks so far in 2026.
Midstream energy is back in the spotlight as Middle East supply risk reroutes capital toward pipeline cash flows, and two ETFs dominate the conversation: the Alerian MLP ETF (NYSEARCA:AMLP) and the Global X MLP & Energy Infrastructure ETF (NYSEARCA:MLPX).
Midstream energy firms—those companies overseeing the transportation, storage, and some processing of oil and gas—remain an essential but often overlooked part of the energy ecosystem. Because these companies often operate like toll roads, in that they get paid whenever energy moves through their system, they can be vital sources of stability for investors.