Alerian Energy Infrastructure ETF

ENFR

Market cap $300M

AI and AI investing have been the big story this year in the stock market, responsible for a major part of overall market growth. While many investors entered 2025 heavily exposed to tech already, that hasn't stopped markets from identifying other opportunities created by the need for AI computing power, like data centers.

In big news for the energy infrastructure space, Targa Resources Corp. (TRGP) has announced significant new investments in its Permian Basin operations. The announcement includes a new natural gas liquids (NGL) pipeline and incremental natural gas infrastructure.

September's rate cut may be exciting for many investors' equities holdings, but those same investors may feel less excited about the income on offer from bonds going forward. Falling rates, of course, lead to falling yields in numerous debt securities and offerings.

Summary While the Permian tends to be known for its oil output, its production mix continues to get gassier, with gas production growth outpacing that of oil. Midstream companies are building new pipeline takeaway capacity from the Permian.

Domestic energy opportunities continue to draw investor attention as data center growth and utility demand ramps up. However, investors appear to have a less firm grasp on energy export expectations, specifically in relation to liquefied natural gas (LNG).

A wave of sanctioned projects is set to expand U.S. LNG export capacity by 75% by 2030, driven by new final investment decisions (FIDs) from major players like Cheniere and Venture Global. Beyond current construction, a robust pipeline of U.S. LNG projects shows strong commercial momentum, indicating more FIDs are on the horizon this year.

SS&C ALPS Advisors announced distributions for its midstream ETFs, underscoring income stability and growth for investors in times of broad market volatility. The Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR) declared third quarter 2025 distributions this week.

DENVER--(BUSINESS WIRE)--The Alerian Energy Infrastructure ETF (NYSE Arca: ENFR) declared its third quarter 2025 distribution of $0.38617 on Tuesday, August 12, 2025. The dividend is payable on August 18, 2025 to shareholders of record on August 13, 2025.

I rate ENFR a buy due to its strong positioning in natural gas infrastructure, benefiting from global clean energy trends and rising LNG demand. ENFR offers superior diversification, lower fees (0.35% expense ratio), and better long-term performance compared to its main competitor, AMLP. The fund's holdings are well-aligned with sector tailwinds, including stable cash flows, robust management, and projected midstream industry growth.

Energy Transfer LP announced on August 6 the expansion of its Transwestern Pipeline that will supply natural gas from the Permian Basin to New Mexico and Arizona. The expansion will help meet rising natural gas demand for power generation driven by population growth and data centers.