Hyperscalers are signing multi-decade power deals to fuel AI training clusters, and natural gas keeps winning. That backdrop has reshaped the case for midstream pipeline funds, and three stand out: the Alerian MLP ETF (NYSEARCA:AMLP), the Global X MLP & Energy Infrastructure ETF (NYSEARCA:MLPX), and the Alerian Energy Infrastructure ETF (NYSEARCA:ENFR).
All three own the toll roads of American energy: gathering systems, long-haul pipelines, processing plants, and LNG export terminals that move molecules from wellhead to power plant to port. AMLP currently offers the richest income stream, with a forward distribution basis of $4.12 per share against a recent price near $54, working out to a yield close to 8%. MLPX and ENFR pay less but bring different structural advantages that matter over a full holding period.
Why Data Centers Changed the Midstream Math
The U.S. Energy Information Administration projects domestic dry gas production climbing from about 109 billion cubic feet per day to roughly 117 Bcf/d by 2028, with LNG exports rising from 14.9 Bcf/d in 2025 to more than 27.7 Bcf/d by 2030. Layer AI power demand on top, and the throughput case for pipelines becomes structural rather than cyclical.
Henry Hub sat at $2.89 per million BTU in July, well below the 2022 spike and cheap enough for utilities and hyperscalers to lock in long-dated supply contracts. Pipeline operators earn from fee-based, volume-linked contracts, which is why data center offtake matters more than spot prices.
AMLP: The Income Standout
The largest pure-play MLP fund on the market is AMLP, with net assets of roughly $12.1 billion. It tracks the Alerian MLP Infrastructure Index, and because more than a quarter of its holdings are partnerships, the fund is taxed as a C corporation. That structure allows the vehicle to hold an all-MLP roster in a single 1099-issuing wrapper.
The portfolio is heavily concentrated at the top. Plains All American at 14% and Sunoco at 13% lead the roster, followed by Western Midstream at 14%. Energy Transfer at 13% and Enterprise Products Partners at 13% round out the core positions that dominate the fund. A bad quarter at any single one moves the whole ETF meaningfully.
Distributions are the reason to own it. The most recent quarterly payment was $1.03, up from $0.95 in the same quarter of 2024. On a trailing 12-month basis, the total reached $4.02, climbing each year since 2023.
On price, AMLP has returned 22% year-to-date and 145% over five years, before accounting for distributions. The tradeoff is the C-corp structure itself. Fund-level corporate tax creates drag that compounds over long holding periods. For an income-first investor who wants pipeline yield today, that drag is acceptable. For a compounder, less so.
MLPX: The Tax-Efficient Compounder
The compounding problem is solved by MLPX by capping MLP exposure below the 25% threshold that would trigger C corporation treatment. It qualifies as a regulated investment company, which means no fund-level tax drag. Global X built the portfolio around midstream C corps and blended in enough partnership exposure to keep yield respectable.
The roster leads with TC Energy at 9% and Enbridge at 9%, the Canadian pipeline giants. Williams at 9% and Kinder Morgan at 7% anchor the U.S. gas side, with ONEOK at 7% rounding out the core. LNG exposure comes through Cheniere Energy at 6% and Venture Global at 2%. These operators move Permian and Marcellus gas toward Gulf Coast liquefaction and toward power plants next to hyperscaler campuses.
Yield is lower than AMLP by design, with a forward annualized basis of $3.03 against a recent price near $73. The trade-off is efficiency: no corporate tax at the fund level means more of the underlying portfolio growth reaches shareholders. Total return backs that up, with MLPX up 25% year-to-date and 175% over five years. Fund assets total roughly $3.5 billion, small enough to move quickly yet large enough for institutional trading.
The caution is a single-name concentration on the C-corp side. Kinder Morgan, Williams, and TC Energy together drive a large share of returns, and regulatory setbacks on any major project would leave marks.
ENFR: The Overlooked North American Pick
The fund most retail investors have not heard of is ENFR. It runs the same 25% MLP cap as MLPX, so it also avoids C-corp tax treatment, though it tracks the Alerian Midstream Energy Select Index. The index gives the fund a heavier Canadian midstream tilt, with Enbridge, TC Energy, Pembina, and South Bow collectively representing a meaningful slice alongside U.S. names such as Williams and Kinder Morgan.
The Canadian exposure is the differentiator. AI power demand spans North America. Alberta gas is increasingly flowing south to fuel generation in the Midwest and Texas, and Canadian LNG capacity is coming online at Kitimat. ENFR captures that cross-border flow in a way the other two funds do not.
The expense ratio is 0.35%, among the lowest in the category. The trailing 12-month distribution of $1.54, against a recent price near $39, works out to a yield of about 4%. Total return has led the group, with ENFR up 27% year-to-date and 29% over the past year.
Scale is the primary tradeoff for ENFR. It is smaller and less liquid than the other two, and Canadian holdings add a currency wrinkle that U.S.-only funds avoid.
Which Fund Fits Which Investor
For a retiree or income-focused holder who wants the highest immediate cash yield and can accept C-corp tax drag, AMLP is the direct answer. For a long-horizon investor who wants pipeline exposure to compound tax-efficiently and prefers the balance-sheet strength of big C-corp operators, MLPX is the cleaner vehicle. For an investor who thinks the Canadian side of the North American gas grid is underappreciated and wants the lowest expense ratio, ENFR earns the allocation.
All three are leveraged to the same underlying trend: multi-decade contracts for gas-fired generation feeding data centers, layered on top of an LNG export buildout that is already permitted and financed. The choice is less about which fund captures the theme and more about which structure fits the tax situation, holding period, and geographic view of the buyer.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks