ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Artificial Intelligence
      • Beyond Basic Beta
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Direct Indexing
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Investing
      • ETF Education
      • ETF Strategist
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Institutional Income Strategies
      • Leveraged & Inverse
      • Managed Futures
      • Market Insights
      • Modern Alpha
      • Multifactor
      • Responsible Investing
      • Retirement Income
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Commodities
        • Gold/Silver/Critical Minerals
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Energy Infrastructure Channel
  2. ETF of the Week: Alerian Energy Infrastructure ETF
Energy Infrastructure Channel
Share

ETF of the Week: Alerian Energy Infrastructure ETF

Karrie GordonJan 20, 2022
2022-01-20

ETF Trends’ CEO Tom Lydon discusses the Alerian Energy Infrastructure ETF (ENFR ) on this week’s ETF of the Week podcast with Chuck Jaffe on the MoneyLife Show.

It’s a particularly timely ETF as winter cold fronts continue to drive up energy prices in the U.S. Midstream companies are responsible for the transport of fuel sources, as well as storage, delivery, and other related services. Because of the contracts that midstream companies have, they are also a source of predictable income based on the fees they collect.

“If you’re looking for areas to protect yourself around inflation, if you feel that energy prices are going to continue to rise, if you’re looking for cash flow and regular income, this is something to definitely consider,” Lydon explains.

Lately, advisors are looking for income opportunities as fixed income continues to face challenges and there are rising concerns around the valuations of equities. Midstream companies can offer more stability because of the critical role that they play within the energy infrastructure.

Midstream companies have had yields above 6.5% lately, something attractive in markets where the AGG has underperformed in the last year and the 10-year Treasury has recently risen above 1.8%, Lydon says. Advisors have been searching for alternatives for the fixed income portion of their traditional 60/40 portfolios and are either converting parts to cash, investing in short-duration bonds, moving into equities, or pursuing alternative income strategies such as midstream investing.

Money is moving within markets at a rate that Lydon hasn’t seen since the financial crisis, and with inflationary concerns, midstream can be a safer bet as midstream contracts have inflation clauses built into them. The energy sector has taken a hit from COVID, Lydon cautions, but it seems to have mostly recovered and be on the uptick.

“Now with this new uptrend in place and concerns about rising interest rates and inflation, and seeing energy prices increase, it’s something to consider if you don’t have an allocation to this area. It’s noncorrelated to equities, it’s noncorrelated to fixed income, and I think diversification is going to be the word in 2022,” Lydon says.

Listen to the Entire ETF of the Week Episode Featuring Tom Lydon:


Content continues below advertisement

For more news, information, and strategy, visit the Energy Infrastructure Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X