How the 4 Largest Midstream ETFs Performed in 2023
One useful way to read this group is by what each fund actually owns, not just by headline โmidstreamโ exposure. The largest ETFs in the sleeve are not interchangeable: some lean more directly into pipeline and infrastructure names, while others include meaningful exposure to utilities or related energy holdings. For long-term allocators, that distinction matters because it changes how closely the fund tracks the intended midstream theme and how much portfolio diversification it really delivers.
Cost is another layer that can outweigh small differences in recent returns. Expense ratios are a persistent drag on total return, especially in a segment that investors often use for income. A lower-fee ETF can preserve more of the distribution stream over time, while a higher-fee fund needs stronger implementation or portfolio construction to justify the added cost. Investors comparing similar funds should also look beyond yield and ask how much of the payout is being offset by fees and portfolio turnover.
Asset size and trading flow also deserve attention. The largest ETF may benefit from better secondary-market liquidity and greater visibility, but size alone does not eliminate concentration risk or guarantee tighter execution. For portfolios that may hold these funds for years, the ability to enter and exit efficiently matters, particularly when the underlying holdings are less liquid than broad-market equities.
The practical takeaway is that midstream ETFs can serve different roles even inside the same theme. Some are better suited as a more focused income sleeve, while others may function as a broader energy-infrastructure allocation. Reviewing methodology, fee burden, and portfolio mix helps investors decide whether they want a purer midstream exposure or a more diversified energy-income building block.
Midstream ETFs have had a strong showing in 2023, with the segment poised to outperform the broader energy sector for the year.
MLPs/midstream have been strengthened by their defensive qualities, M&A activity, and positive dividend growth this year. Midstream investments are favored for their history of providing generous income and compelling returns to investors.
The four largest midstream ETFs include the $7.3 billionย Alerianย MLPย ETF (AMLP), the $2.4 billionย First Trust North American Energy Infrastructure Fund (EMLP), the $1.5 billionย Global Xย MLPย ETF (MLPA), and the $975 millionย Global Xย MLPย & Energy Infrastructureย ETF (MLPX).
Despite the midstream segmentโs strong recent performance andย attractive valuations, only AMLP has attracted significant inflows in 2023. The fund has seen $276 million in net flows year to date through December 20, compared to $29 million for MLPA. Conversely, EMLP and MLPX have seen net outflows totaling $346 million and $162 million, respectively.
While its large asset base puts it at a sizable advantage in accreting flows, AMLP also outpaces its midstream peers from total return and dividend yield perspectives.
See more: โVettaFiโs Head of Energy Research on 2023 Highlights and Outlook for Midstreamโ
Performance
AMLP is handily outpacing EMLP, MLPA, and MLPX on a total return basis year to date through December 20. During this period, AMLP is up 20.9%, while MLPA and MLPX are up 15.7% and 14.3%, respectively. Meanwhile, EMLP is lagging the group, up only 6.6% year to date.
EMLPโs overweight to the utilities sector has caused the fund to significantly trail its midstream peers. Over 45% of the First Trust fund by weight is in utilities, per ETF Database.
EMLP is also the most expensive in the group, charging 95 basis points. In comparison, AMLP charges 85 basis points, and MLPA and MLPX each charge 45 basis points.
Dividend Yield
Many investors are attracted to the midstream space for the generous yields offered, making this an important metric when evaluating funds in the space. AMLP also has an edge in providing the highest dividend yield of the four funds.
AMLPโs indicated yield is 8.2% as of December 20. Meanwhile, MLPAโs indicated yield is 7.8%, MLPXโs yield is 5.4%, and EMLPโs yield is 4.1%.
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