Global X MLP ETF: How to Invest in Diversified Energy Infrastructure

The Global X MLP ETF is a unique investment opportunity that allows you to tap into the diversified energy infrastructure of the United States.

This ETF focuses on Master Limited Partnerships (MLPs), which are companies that own and operate energy infrastructure such as pipelines, storage facilities, and transportation systems.

By investing in the Global X MLP ETF, you can gain exposure to a wide range of energy-related assets, including pipelines, storage facilities, and transportation systems.

The ETF holds a portfolio of 50+ MLPs, giving you a diversified investment in the energy infrastructure sector.

The Global X MLP ETF has delivered impressive returns over the past 10 years, with a performance since inception of 52.84%. This is a remarkable achievement, especially considering the ups and downs of the market.

Here are some key performance metrics for the Global X MLP ETF:

The ETF has also shown a high level of correlation with the S&P 500 index, with a correlation of 99.76% over the past 10 years. This suggests that the ETF has closely tracked the performance of the broader market, which is a key consideration for investors.

The performance of an MLP (Master Limited Partnership) investment can be a bit complex, but let's break it down.

The Global X MLP & Energy Infrastructure ETF has a portfolio turnover rate of 24%, which is lower than the average for its category. This means it holds its assets for around 4.17 years, which can be beneficial for long-term investors.

In the month of January 2025, the Global X MLP & Energy Infrastructure ETF returned 3.9%, earning it a grade of C in its category. The average return for the Energy Limited Partnership category was 5.6%.

Here are some key performance metrics for the Global X MLP ETF:

These metrics show that the Global X MLP ETF has had a relatively stable performance over the past year, with a low maximum loss and a high high return. However, its alpha is negative, indicating that it has not outperformed the market.

The Global X MLP & Energy Infrastructure ETF (MLPX) is a passively managed ETF that tracks the Solactive MLP & Energy Infrastructure Index. This index focuses on midstream energy infrastructure MLPs and corporations.

The ETF has a portfolio turnover rate of 24%, which is lower than the average portfolio turnover of 32% for the Energy Limited Partnership category. This suggests that the fund holds its assets for a relatively long time.

In January 2025, the MLPX ETF returned 3.9%, earning it a grade of C in its category. The Energy Limited Partnership category had an average return of 5.6% that month.

Here are some key facts about the MLPX ETF's management team:

The ETF has a non-diversified structure, which means that it can invest more than 25% of its assets in the securities of a single issuer. The fund's 80% investment policies are non-fundamental and require 60 days prior written notice to shareholders before they can be changed.

The Global X MLP ETF is a great investment option for those looking to diversify their portfolio.

It has a total net assets of $1.3 billion, as of the last update.

The fund has a management fee of 0.45%, which is relatively low compared to other ETFs.

The MLP index is designed to track the performance of the Solactive MLP Index, which is comprised of 25 MLPs.

The fund has a dividend yield of 6.8%, making it an attractive option for income-seeking investors.

The MLP index has a 5-year annualized return of 10.8%, which is a significant return over a long period.

The fund has a high trading volume, with an average daily trading volume of 1.3 million shares.

The Global X MLP ETF has been a reliable source of income for investors, offering a strong and steady yield. With a 6.90% dividend yield over the last twelve months, this ETF has been a great option for those seeking regular income.

The ETF has consistently increased its distributions over the past two years, with an annual payout of $3.58 per share. This demonstrates a commitment to providing a stable income stream for investors.

One of the key benefits of the Global X MLP ETF is its ability to provide a competitive yield, with some years offering yields as high as 13.85%. This is particularly attractive in a low-interest-rate environment.

Here are some of the highest dividend yields offered by the Global X MLP ETF in recent years:

The ETF's dividend yield has been steadily increasing over the past few years, making it an attractive option for income-seeking investors.

The Global X MLP ETF offers a risk-adjusted approach to investing in master limited partnerships. With an overall rank of 81, it ranks among the top 19% of ETFs on our website.

MLPA's risk management strategy is designed to balance risk and reward. This is reflected in its common performance measures, which show a strong track record.

One key measure of risk is the ETF's volatility. While specifics are not provided, MLPA's risk-adjusted approach suggests it may be a more stable option for investors.

Investors who prioritize risk management may find MLPA's risk-adjusted performance rank of 81 to be a compelling feature. This rank indicates that it is among the top 19% of ETFs on our website.

The Global X MLP ETF is a great investment option for those looking to diversify their portfolio.

MLPD, the fund that operates a systematic covered call strategy, seeks to maintain an underlying long position in the Global X MLP & Energy Infrastructure ETF (MLPX).

The fund writes monthly European-style at-the-money FLEX call options on the same ETF, with the goal of attracting the highest possible premiums available while minimizing the likelihood that the options are exercised.

The calls are written at-the-money to minimize the likelihood of exercise, and the fund will buy the call back on the day before the monthly roll date to avoid any potential issues.

The fund's distribution methodology involves paying out the lower of half its option premium received or 1% of its NAV in the form of a dividend.

The top 10 holdings in the Global X MLP ETF are a mix of established players and smaller companies.

Energy Transfer LP is the largest holding in the ETF, making up 13.13% of the fund's assets.

Enterprise Products Partners L.P. is the second-largest holding, accounting for 12.04% of the ETF's assets.

MPLX LP is the third-largest holding, with a weight of 11.65% in the ETF.

Plains All American Pipeline, L.P. is the fourth-largest holding, making up 10.20% of the fund's assets.

Here are the top 10 holdings in the Global X MLP ETF, along with their respective weights:

The global X MLP ETF has gained significant attention in recent years due to its unique investment strategy.

This fund focuses on investing in master limited partnerships (MLPs), which are a type of business structure that combines the tax benefits of a partnership with the liquidity of publicly traded stocks.

The MLP sector is known for its high yields, with many partnerships offering double-digit dividend payouts.

The fund's investment strategy allows it to tap into this high-yielding sector, providing investors with a potentially attractive source of income.

The global X MLP ETF has a total of 44 holdings, with a top 10 holding consisting of companies such as Enterprise Products Partners and Plains All American Pipeline.

These companies are major players in the energy infrastructure space, providing critical services such as pipelines and storage facilities.

The fund's expense ratio is 0.45%, making it a relatively low-cost option for investors.

This low expense ratio is a key factor in the fund's ability to generate attractive returns for investors.

The Global X MLP ETF offers diversified sector exposure, which can be beneficial for investors looking to spread their risk. The top 10 holdings of the ETF include companies that we've covered in the MLP space.

This diversification helps to minimize the risk associated with investing in a single company. By spreading your investment across multiple companies, you can potentially reduce your exposure to any one particular company's performance.

One of the benefits of this ETF is that it's a high-yield dividend payer, which can be attractive to income-seeking investors. The relatively low risk at current prices also makes it an appealing option for those looking for a stable investment.

The ETF's diversified sector exposure can also provide a more stable income stream, as the income from multiple companies can help to smooth out any fluctuations in individual company performance.

The Global X MLP ETF has the potential to serve as a multi-purpose income pipeline, providing a competitive yield and a positive relationship with volatility.

Its structure allows for discretion over premium income distributions, which can help offset drawdowns for the underlying MLPX or act as a supplementary boost to the performance of a diversified portfolio.

The MLPD ETF offers a unique combination of energy sector exposure and potential for capital gains, making it a lucrative option for both growth-seeking and income-seeking investors.

MLPA has historically been successful in generating positive returns, with a strong and steady yield that can provide a reliable source of income.

Investors can consider the MLPD ETF as a way to diversify their portfolio risks and potentially earn a competitive yield, while the MLPA ETF offers a strong and steady yield backed by substantial capital gains potential.