- The Midstream Energy ETF provides exposure to midstream energy companies involved in the processing, transportation and storage of oil, natural gas and natural gas liquids in the US and Canadian markets.
- A total of 7 new names were added to the index, including Cheniere Energy Inc, the first US company to export liquefied natural gas (LNG).
October 2022, London
HANetf, Europe’s first independent white-label ETF and ETC platform, and leading provider of thematic ETFs, and crypto and commodity ETCs, is pleased to announce that the Alerian Midstream Energy Dividend Index (AEDW) has undergone its annual reconstitution. [1]
The Alerian Midstream Energy Dividend Index is a fundamentally-weighted index based on the liquid, dividend-paying portion of the North American energy infrastructure market. The capped, dividend-weighted index reflects the proportionate share of aggregate annual cash distributions each company is expected to pay. The Midstream Energy ETF (MMLP) provides exposure to the index.
The new additions can be found below:
One of the new names, Cheniere Energy Inc, became the first US company to export liquefied natural gas (LNG) back in 2016. Given Russia’s ongoing invasion of Ukraine, and the continuing scarcity of Russian oil and gas, demand for alternate energy sources has skyrocketed. LNG is viewed by many as a solution, and by June 2022, the US was supplying more natural gas to Europe than Russia sends by pipelines.
North American energy infrastructure continues to provide attractive investment characteristics in today’s volatile market, including generous yields and real asset exposure, as energy remains a bright spot in a challenging market.
The Alerian Midstream Energy Dividend Index (AEDW) was yielding just over 7% as of 14 October.[2] Energy infrastructure companies are executing on dividend growth and buyback programs as they generate excess cash flow from fee-based businesses. The upcoming earnings season will provide an opportunity for companies to highlight these company-level tailwinds.
Stacey Morris, Director of Research at VettaFi, commented:
“In addition to offering real asset exposure, energy infrastructure remains well positioned for inflation given contracts with annual inflation escalators. As higher commodity prices incentivize measured production growth, energy infrastructure companies are selectively pursuing growth opportunities related to oil and natural gas, while also investing in opportunities focused on carbon capture, hydrogen, and renewable fuels as they position for the future.”
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