AMLP ETF Review: Is Alerian MLP ETF Worth Buying?

Alerian MLP ETF is the largest midstream MLP ETF, providing high-yield exposure to pipeline operators like Enterprise Products, Energy Transfer, and MPLX — the tollbooth companies that collect fees on every barrel of oil and cubic foot of gas flowing through America's energy infrastructure.

Last updated: 2026-02-02 · Data: Yahoo Finance, fund prospectuses, SEC filings

What Is AMLP?

The Alerian MLP ETF holds America's energy infrastructure—pipelines, storage facilities, and processing plants that move oil, gas, and refined products across the continent. Managed by Global X, AMLP tracks the Alerian MLP Infrastructure Index, focusing on master limited partnerships that generate fee-based revenue from energy transportation and storage. Launched in 2010 with an 0.85% expense ratio and $10.6 billion in assets, it's the largest MLP fund in the market.

Current Snapshot

Why It Matters for Real Asset Investors

AMLP represents the pure play on America's energy tollbooth infrastructure. These aren't oil companies gambling on commodity prices—they're fee-collecting utilities that get paid whether oil costs $50 or $150 per barrel. When you own Enterprise Products Partners or Energy Transfer, you own the pipes that Exxon and Chevron must use to move their products. That's monopolistic pricing power wrapped in energy infrastructure.

The MLP structure creates unique advantages and headaches. These partnerships distribute most of their cash flow to unit holders, generating the 8.4% yield. But the tax complexity is real—you'll receive K-1s instead of 1099s, and the distributions can create phantom income. For taxable accounts, this creates friction. For tax-deferred accounts, it's a non-issue, making AMLP particularly attractive in retirement portfolios.

This ETF shines when energy infrastructure utilization rises and when investors hunt for yield in a low-rate environment. It struggles when environmental regulations threaten pipeline expansion or when rising rates make the high yield less attractive relative to risk-free alternatives.

Top Holdings

Enterprise Products Partners (EPD) - 12.6%: The crown jewel of midstream, operating 50,000 miles of pipelines moving natural gas, crude oil, and petrochemicals. Think of it as the FedEx of energy transportation.

Energy Transfer (ET) - 12.7%: Massive pipeline network spanning the continent, with particular strength in natural gas gathering and interstate transport. Recently completed major expansion projects.

MPLX LP (MPLX) - 12.4%: Marathon Petroleum's midstream arm, handling gathering, processing, and transportation primarily in the Marcellus and Bakken shale regions.

Plains All American Pipeline (PAA) - 12.9%: Focused on crude oil transportation and storage, with extensive pipeline networks connecting production regions to refineries.

Western Midstream Partners (WES) - 13.0%: Natural gas gathering and processing specialist, particularly strong in the Permian Basin and DJ Basin regions.

Sunoco LP (SUN) - 12.3%: Retail fuel distribution and logistics, operating convenience stores and fuel terminals across the Eastern United States.

How It Fits the Portfolio

AMLP serves as the income anchor in the infrastructure sleeve of a real asset portfolio. The 8.4% yield provides immediate cash flow while the underlying assets offer inflation protection through fee escalators and contract renewals. Position sizing typically runs 3-7% of total portfolio depending on income needs and tax situation.

The ETF works particularly well paired with broader energy equity exposure or commodity positions, as the midstream companies benefit from higher energy throughput volumes during commodity booms while maintaining more stable cash flows during busts. It's also a natural complement to utility stocks, offering similar defensive characteristics with higher yield.

Regime Signals

AMLP outperforms during energy production booms when pipeline utilization rises, regardless of commodity price direction. The sweet spot occurs when domestic oil and gas production grows (driving volume), interest rates stay moderate (supporting yield-seeking behavior), and environmental policy remains pipeline-friendly.

The fund struggles when the Federal Reserve aggressively raises rates, making the 8.4% yield less attractive compared to risk-free alternatives. Pipeline expansion restrictions or carbon pricing policies create additional headwinds by limiting growth prospects for the underlying assets.

Rate cuts and dollar weakness typically benefit AMLP, as yield-hungry capital flows into high-distribution MLPs and energy infrastructure demand rises with economic expansion.

Related Research

• Alabama Power Grid Risk Assessment
• Kinder Morgan (KMI) Tollbooth Analysis
• MLPA: Global X MLP ETF
• Enterprise Products Partners (EPD) Tollbooth Analysis
• Consolidated Edison (ED) Tollbooth Analysis

Frequently Asked Questions

What is the dividend yield of AMLP?

AMLP typically yields 7-9%, making it one of the highest-yielding equity ETFs available. This income comes from master limited partnerships (MLPs) that generate stable cash flows from long-term pipeline capacity contracts. After the 2020 distribution cuts, most MLPs have rebuilt balance sheets and coverage ratios, supporting sustainable high payouts. AMLP distributes income quarterly and is a core holding for income-focused real asset portfolios.

What is the expense ratio of AMLP?

AMLP charges a 0.85% expense ratio, which is higher than broad energy ETFs but reflects the complexity of the MLP structure. The fund is structured as a C-corporation rather than a traditional ETF, which means it pays corporate taxes on gains and can create tracking error versus the underlying index. This structure avoids the K-1 tax forms that direct MLP ownership generates, which is a significant convenience benefit for most investors.

What are MLPs and why do they pay high dividends?

Master Limited Partnerships are energy infrastructure companies structured to pass through most cash flow to unitholders. Pipeline MLPs earn fee-based revenue from transporting oil, gas, and refined products — revenues that are largely insulated from commodity prices. This stable cash flow model, combined with the pass-through structure, enables distribution yields of 6-10%. MLPs are effectively tollbooths on the energy supply chain.

How does AMLP fit into the Energy Macro framework?

AMLP provides the income pillar of an Energy Macro portfolio. While energy producers (XLE) capture commodity price upside and commodities (DBC) hedge inflation, AMLP generates steady current income from infrastructure that is essential regardless of energy prices. The combination of 7%+ yield, inflation protection from contractual escalators, and low correlation with growth equities makes AMLP a strategic allocation for income-seeking real asset investors.

For our complete allocation framework across real assets, infrastructure, and income strategies, see The Blackout Fortune Playbook.

Last updated: February 1, 2026 | Data: Yahoo Finance, ETF provider filings