The lowest-cost ETF in the energy infrastructure category has reached a significant trading milestone.
The Alerian Energy Infrastructure ETF (ENFR ) surpassed $300 million in assets under management as of March 17. The energy infrastructure ETF has seen strong flows in recent months, having crossed $200 million for the first time last November.
ENFR, which charges 35 basis points, provides exposure to the Alerian Midstream Energy Select Index (AMEI). The index is a composite of North American energy infrastructure companies, including C-corps and MLPs. These companies transport, process, and store hydrocarbons, a crucial role that generates predictable fee-based cash flows.
The fund has generated strong returns for investors in recent years, handily outpacing broader energy in 2024. Midstream is less sensitive to moves in commodity prices compared to other sectors of energy, given midstream companies’ fee-based business models, which support stable cash flows.
Growth Opportunities for the Energy Infrastructure ETF
ENFR remains well-positioned, as its top holdings are capitalizing on NGL growth opportunities and play important roles in the NGL value chain. As NGL production is rising in the U.S., midstream companies are building out the infrastructure necessary to support production growth as well as transport the NGLs to their end destinations.
Energy Transfer LP (ET), ENFR’s top holding as of March 18, can export over 1.1 million barrels per day (MMBpd) of NGLs, which is 20% of the global NGL market. Additionally, the company is adding 0.25 MMBpd of export capacity in 2025.
See more: Energy Transfer Strikes Deal With Data Center for Natural Gas Supply
Targa Resources (TRGP), another holding in ENFR, exported around 0.42 MMBpd of liquefied petroleum gas (LPG) last year, making up 9% of the global export market. LPGs are a subset of NGLs, and include propane and butane.
Additionally, ENFR holdings ONEOK (OKE) and MPLX LP (MPLX) recently announced a joint venture to build their first LPG export facility. The companies are capitalizing on the opportunity to fully participate across the NGL value chain, from the well to export facilities, highlighting the benefits of having an integrated system.
See more: ONEOK and MPLX Add NGL Export Capacity With Joint Venture, Pipeline
For more news, information, and analysis, visit the Energy Infrastructure Channel.
VettaFi LLC (“VettaFi”) is the index provider for ENFR, for which it receives an index licensing fee. However, ENFR is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of ENFR.
