Intermediate ETFs remained flat through August as the rest of the market faltered after a strong rebound in July.
The $130 million ETF Alerian Energy Infrastructure (ENFR) has been accumulating assets at a healthy pace this year, recording net inflows of $8 million in August. The fund saw inflows of $4 million in July and $8 million in June, with year-to-date inflows totaling $54 million, according to VettaFi.
ENFR provides exposure to the Alerian Midstream Energy Select Index (AMEI), an index comprised of North American energy infrastructure companies. AMEI was returning 5.87% and was up 22.04% year-to-date based on total return at the end of August. Even with notable gains this year, AMEI is currently trading at a modest discount to its 3-year average EV/EBITDA multiple, encouraging investors to continue allocating money to ENFR.
AMEI was essentially flat in August, returning 0.10% on a total return basis, outperforming the S&P 500, which fell 4.08% on a total return basis. While WTI oil prices fell 9.20% during the month, energy stocks were supported by a constructive earnings season, stable dividends and strength in natural gas prices.
Natural gas prices hit a multi-year high during the month, but ended August up 10.91% after falling at the end of the month.
The last of the interim earnings reports ended in early August, and the segment as a whole posted strong results. Many midstream names beat consensus expectations or raised their full-year financial forecasts.
For more news, insights and strategy visit the Energy Infrastructure Channel.
vettafi.com is owned by VettaFi, which also owns the index provider for ENFR. VettaFi is not the ENFR sponsor, but the VettaFi affiliate receives index license fees from the ETF sponsor.
Learn more at ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.