EMLP: A Diverse but Potentially Hindered Energy Infrastructure ETF

EMLP is an ETF offering exposure to the energy infrastructure sector without individual stock selection. It is more diverse than peers, but this diversity may hinder performance in specific market conditions.

The Global X MLP & Energy Infrastructure ETF (MLPX) provides investors with exposure to the energy infrastructure sector, offering a diversified portfolio of midstream infrastructure companies. As of June 16, 2025, the ETF has a current price of $50.78, with a 4.5% dividend yield and an expense ratio of 0.45% [1].

MLPX invests at least 80% of its total assets in the Solactive MLP & Energy Infrastructure Index, which tracks the performance of midstream energy infrastructure MLPs and corporations. The fund's holdings are predominantly in energy companies, with the top five holdings including Williams Cos Inc, Oneok Inc, Enbridge Inc, TC Energy Corporation, and Kinder Morgan Inc [1].

One of the key advantages of investing in MLPX is its diversification. The fund holds a diverse portfolio of companies, reducing the risk associated with individual stock selection. However, this diversity may also hinder performance in specific market conditions, as the fund's performance is influenced by the overall energy sector and the performance of the underlying index [1].

In addition to its diversification benefits, MLPX offers investors a way to get exposure to America's energy future. The fund invests in midstream infrastructure companies, which tend to have relatively stable streams of income from take-or-pay contracts and offer less sensitivity to the price of energy compared to exploration and production companies [2].

The fund's holdings also include companies that benefit from long-term contracts with customers, such as Kinder Morgan and Cheniere Energy. These companies are less sensitive to short-term fluctuations in energy prices and can provide more stable returns to investors [2].

Investors should be aware that MLPX is not a passive investment. The fund's 80% investment policies are non-fundamental and require 60 days prior written notice to shareholders before they can be changed. This means that the fund's holdings can change over time, and investors should monitor the fund's holdings to ensure they align with their investment goals [1].

In conclusion, the Global X MLP & Energy Infrastructure ETF offers investors a diversified way to invest in the energy infrastructure sector. While its diversification may hinder performance in specific market conditions, the fund's holdings provide investors with exposure to a stable and growing sector of the energy industry. Investors should carefully consider the fund's holdings and investment policies before making a decision to invest.

References:
[1] https://money.usnews.com/funds/etfs/energy-limited-partnership/global-x-mlp-energy-infrastructure-etf/mlpx
[2] https://finance.yahoo.com/news/2-beaten-down-dividend-stocks-100000998.html