Energy Income’s Stealth Champion: Why EIPX is a Must-Buy for Dividend-Hungry Investors

The energy sector is a rollercoaster ride these days—oil prices swing wildly, geopolitical tensions flare, and renewables are rewriting the rules. But what if there’s a fund that lets you profit from the chaos without getting tossed out of your seat? Enter the FT Energy Income Partners Strategy ETF (EIPX), a stealthy income machine designed to thrive in this turbulent landscape. Let’s break down why this fund isn’t just surviving—it’s dominating.

The Midstream Edge: Fee-Based Stability in a Volatile World

EIPX’s secret sauce is its strategic overweight in midstream energy operators like Enterprise Products Partners (EPD) and Energy Transfer (ET). These companies don’t bet on oil prices—they earn steady fees for transporting, storing, and processing energy commodities. Whether oil is at $60 or $100 a barrel, midstream players collect their toll.

Take a look at the fund’s top holdings (as of March 2025):
- Enterprise Products Partners (7.56%)
- Energy Transfer (6.61%)
- MPLX (4.97%)

These are the tollbooth operators of the energy world. Their fee-based models shield EIPX from commodity price swings, a key advantage over upstream drillers or pure-play oil stocks.

Dividend Powerhouse with a 3.12% Yield

While the S&P 500’s average yield hovers around 1.5%, EIPX is serving up a 3.12% distribution rate—a mouthwatering deal for income hunters. And it’s not just a flash-in-the-pan payout. Since its 2022 launch, EIPX’s NAV has risen 15.63%, with a 23.23% jump in 2024 alone, outperforming the S&P Global 1200 Energy Index by a staggering 16.2 percentage points last year.

Compare that to its peer, the MLPX ETF (0.45% expense ratio but a narrower yield gap). EIPX’s slightly higher 0.95% expense ratio is more than offset by its higher yield and broader diversification. MLPX is a pure midstream play, but EIPX’s strategic allocations to renewables and utilities (7.9% of the fund) give it a cushion in the energy transition.

Diversification That Doesn’t Compromise on Risk

EIPX isn’t just stacking midstream stocks. Its portfolio is a masterclass in balance:
- Underweight upstream: Only 7% in volatile exploration & production (E&P) firms, unlike rivals that overexpose to oil price swings.
- Renewables exposure: While 69% of assets are in traditional energy, the fund’s multi-utility and renewable holdings (like National Fuel Gas and TotalEnergies) position it to weather regulatory shifts.

This mix has kept EIPX’s NAV resilient in downturns. For instance, during Q1 2025’s oil price dip, EIPX’s NAV fell just 1.2%, while pure upstream ETFs like XOP dropped over 5%.

The Numbers Don’t Lie: Recent Performance is On Fire

Check out EIPX’s NAV surge in May 2025:
- April 30, 2025 (assumed): $24.23 (pre-March data gap)
- May 16, 2025: $25.41, a 4.87% jump in just 16 days.

Even better, its 30-day SEC yield hit 3.32% as of February 2025, a sign its dividends are rock-solid.

Why Act Now? The Clock is Ticking

Here’s the kicker: EIPX is still under the radar. Its average daily trading volume in May was just 25,000 shares, meaning it’s not yet crowded. As energy infrastructure gets priced in for its fee stability and dividend punch, this ETF could be the next big income story.

Bottom Line: EIPX is the ultimate income play for the energy sector. Its midstream focus, diversified renewables exposure, and a yield that crushes the competition make it a no-brainer for investors who want steady payouts without the volatility.

Action Item: Don’t wait. Buy EIPX now before the crowd catches on—and before rising rates make this 3.12% yield look even sweeter. This is a fund built for the next phase of energy’s evolution.