There's an ETF for that? The Top 3 Master Limited Partnership (MLP) ETFs

Alerian MLP ETF

AMLP

+1.06%

Listed since August 2010 on the NYSE, AMLP is the largest U.S. MLP ETF, boasting around $8.4 billion in assets under management. It tracks the Alerian MLP Infrastructure Index, a float-adjusted, capitalization-weighted index that gives you broad exposure to the midstream energy sector.

When you invest in AMLP, you're getting exposure to a diverse mix of MLPs involved in petroleum and natural gas pipelines, as well as gathering and processing, marketing and distribution, liquefaction, and compression. Notable names within AMLP include Energy Transfer, Enterprise Product Partners, MPLX, Sunoco, and Hess.

Finally, it's an income powerhouse, offering a quarterly distribution, which currently amounts to a high 7.31% trailing twelve-month yield as of April 23.

First Trust North American Energy Infrastructure Fund

EMLP

+0.48%

The next largest ETF in this category is EMLP, with an AUM of $3.3 billion. Also listed on the NYSE, this ETF is sub-advised by Energy Income Partners, LLC.

EMLP takes a broader approach than AMLP by not limiting its holdings to MLPs alone. It also includes corporations operating energy infrastructure assets, such as pipelines and renewable energy production, as well as gas utilities.

Some notable examples of non-MLP pipeline companies within EMLP include Oneok, Kinder Morgan, and Williams, while utilities like Sempra and Southern also form part of its portfolio. Additionally, EMLP's North American focus brings many Canadian pipelines into the mix, including Enbridge and TC Energy, alongside utilities such as Fortis and Northland Power.

However, EMLP is quite pricey—charging a fee of 0.95%, which is even higher than AMLP's 0.85%. The 12-month yield for EMLP is also lower at 3.66%, reflective of its broader focus beyond just high-yield MLPs.

Global X MLP ETF

MLPA

+1.03%

If you're prioritizing low fees in your ETF selection, Global X's offerings might just fit the bill. MLPA, their flagship NYSE-listed ETF, tracks the Solactive MLP Infrastructure Index and carries a relatively low expense ratio of 0.45%, which is significantly lower than both AMLP and EMLP.

MLPA currently comprises 20 holdings and includes significant overlap with AMLP, featuring all 15 of AMLP's holdings, albeit distributed in different weights. This ETF also provides quarterly distributions, boasting a 12-month yield of 7.1%, making it an attractive option for those seeking regular income.

Global X also offers a companion ETF, the Global X MLP & Energy Infrastructure ETF

, which mirrors a strategy and composition more similar to that of EMLP.

MLPX holds 25 assets, including 10 MLPs also found in MLPA, with the rest being incorporated pipelines such as Enbridge, TC Energy, Williams, Oneok, and Kinder Morgan.

Like MLPA, MLPX maintains a low expense ratio of 0.45%. However, due to its broader focus and not being a pure-play MLP ETF, it offers a lower yield, currently at 4.87%.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.