ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • 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. ETF Building Blocks Channel
  2. Midstream Energy Companies Are Changing with the Times
ETF Building Blocks Channel
Share

Midstream Energy Companies Are Changing with the Times

Tom LydonJun 16, 2021
2021-06-16

Upstream integrated energy companies aren’t often viewed as nimble. However, many midstream counterparts, including some members of the ALPS Alerian MLP ETF (AMLP A-), are adapting with the times.

With the domestic energy landscape rapidly evolving and a White House focused on renewable energy adoption, the era of large-scale pipeline projects may be gone. Other external forces indicate midstream operators need to get wise to the green energy boom or risk dinosaur status.

“Environmental, social and governance-oriented investors are pressuring companies that own and operate interstate gas transmission assets to decarbonize,” according to S&P Global Market Intelligence. “And many of the pipelines’ utility customers are pledging to reach net-zero carbon emissions by or before 2050 to comply with state mandates.”

AMLP 1 Year Performance

More Positive News for AMLP Investors

AMLP, the largest exchange traded fund focusing on master limited partnerships, is enjoying a remarkable resurgence in 2021. The fund is higher by almost 50% year-to-date and still yields north of 10%. In other words, investors are enjoying big compensation from a play on rebounding oil prices.

However, AMLP’s 2021 bullishness may not be entirely attributable to traditional fossil fuels perking up. Some of the funds holdings are broadening their wind and solar exposure, a sensible move given the growth of those renewable sources. Moreover, technological advances may help pipeline operators become pivotal parts of the renewable energy equation.

“A range of technologies could help ensure that gas infrastructure assets do not become stranded but rather aid in the energy transition, according to Erin Blanton, a senior research scholar at Columbia University’s Center on Global Energy Policy,” notes S&P Global. “Possibilities could include the use of lower-carbon fuels such as hydrogen and biomethane that could still be used to meet demand for highly deliverable fuel supplies that can be stored long term.”

Many existing pipelines are conducive to delivering hydrogen blending, which could augur well for some AMLP components’ role in energy transition. Some AMLP components are already working on blending while others have the infrastructure in place to ease delivery of wind and solar power.

For more on cornerstone strategies, visit our ETF Building Blocks Channel.


Content continues below advertisement

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