Midstream Energy Dividend ETF Report | July 2026

Midstream Energy Dividend ETF Key Takeaway

In June, the broader energy sector fell as a formal agreement was signed between the U.S. and Iran to reopen the Strait of Hormuz. The U.S. oil benchmark dropped -20.44% to $69.50 per barrel, its steepest monthly decline since November 2021, while U.S. natural gas prices were roughly flat at $3.28 per million British thermal unit.[1]

Despite downward pressure on spot oil prices, WTI crude futures for 2027 remain about $10 per barrel higher than at the start of the year.[2] Following initial upward revisions in May, the U.S. Energy Information Administration (EIA) raised its 2027 estimates for oil and natural gas liquids (NGLs) even further in June. The EIA now expects U.S. oil production to reach a new record high next year, growing by 428,000 barrels per day relative to 2026.[3]

For the month of June, MMLP’s underlying index, the Alerian Midstream Energy Corporation Dividend Index (AMCCD) was up +1.98% on a net-total-return basis, outperforming the broad Energy Select Sector Index (IXE), which fell -4.87% for the month on a total-return basis. Energy remains the second best-performing sector in the S&P 500 this year after information technology. Year-to-date through June, MMLP’s underlying index gained +25.26% on a net-total-return basis. This modestly beats the +20.58% total return for the Energy Select Sector Index (IXE) and the +23.26% total return for the Stoxx 600 Oil and Gas Index (SXEP), which tend to be more sensitive to oil prices. Midstream has handily beat the S&P 500, which was up +10.21%.[4]

With the reopening of the Strait of Hormuz, market focus has shifted to robust natural gas demand tailwinds. U.S. LNG export capacity is projected to roughly double by 2031 based on projects currently under construction, acting as the largest driver of incremental U.S. natural gas demand.[5] Furthermore, recent Middle Eastern supply disruptions have reinforced the global appeal of North American energy exports, paving the way for export capacity expansions for crude and natural gas liquids (NGLs).[6]

U.S. domestic natural gas demand is also expected to increase alongside rising electricity needs, as electrification, coal-to-gas switching, and new data centers drive power demand. Companies continue to see substantial growth opportunities tied to these power needs and surging LNG demand, driving project backlogs to record highs and securing a durable runway for fee-based EBITDA growth.[7] Companies primarily focused on natural gas infrastructure make up roughly two-thirds of MMLP by weighting.[8]

As a reminder, the U.S. and Canadian energy infrastructure companies in MMLP primarily provide services for a fee, limiting their exposure to commodity prices. Companies are generating free cash flow and returning excess cash to investors through growing dividends[9] and opportunistic buybacks.[10]

Past performance is not indicative of future performance, and when you invest in ETFs your capital is at risk.

Constituent News

Keyera (KEY CN, 2.56% Weight) closed its C$1.2 billion acquisition of the remaining 50% interest in the KAPS Pipeline[11] and provided a pro-forma update on its completed acquisition of Plains’ (PAGP, 2.94% Weight) Canadian NGL assets. The KAPS buyout is expected to be accretive to cash flow, boosting KEY’s 2025-2027 fee-based EBITDA per share growth target to 16% – 18%, followed by a projected 7% – 8% growth rate through 2029. The company raised its near-term synergy target from the Plains NGL acquisition to C$120 million – C$140 million and expects 2026 growth capital of C$650 million – C$725 million, which includes C$100 million to keep KAPS Zone 4 on track for a mid-2027 in-service date. [12]

Plains GP Holdings (PAGP, 2.94% Weight) raised its 2026 growth capital spending guidance to a range of $400 million to $450 million, up from $350 million, while holding maintenance capital steady at $185 million.[13] The budget increase will fund projects across its Permian and Canadian crude assets, specifically accommodating increased volumes in the New Mexico Delaware Basin, which are expected to drive 2027 EBITDA growth.

Venture Global (VG, 1.19% Weight) announced the expansion of two LNG sales agreements. VG expanded its 20-year deal with Atlantic-SEE LNG Trade, doubling contracted volumes to 1.0 million tonnes per annum (MTPA) starting in 2030,[14] and signed a binding five-year agreement with EnBW for approximately 0.82 MTPA of U.S. LNG starting in 2026, which adds to existing 20-year contracts for 2 MTPA.[15]

*Index weightings as of 30/6/26

Midstream Energy Dividend ETF Performance
As of 31.08.2026

MMLP (Fund)AMCCDN* (Index)
1M1.99%1.99%
3M6.89%6.87%
6M10.15%10.07%
YTD31.37%31.26%
12M32.83%32.71%
3Y94.75%95.18%
Since Inception (27/07/2020)280.93%271.68%

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31.08.2026. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. When you invest in ETFs and ETCs, your capital is at risk.

*This fund changed its index on the 24th October 2024, from the Alerian Midstream Energy Dividend Index to the Alerian Midstream Energy Corporation Dividend Index. The index performance is a composite of the old index prior to this date and the new index after.

This report was written by, and is the opinion of, VettaFi, the index provider of the Alerian Midstream Energy Dividend Index, the underlying index of MMLP. VettaFi does not issue, sponsor, endorse, sell, or promote MMLP.

Key risks

  • Past performance is not indicative of future performance.
  • Energy infrastructure companies may be subject to specific industry and sector risks such as commodity price fluctuations and decrease in demand for energy during a recession.
  • The return on investment in energy infrastructure companies may be influenced by fluctuations in energy prices or changes to the US economic situation.
  • When you invest in ETFs your capital is fully at risk and may not get back the amount originally invested.
  • Exchange rates can have a positive or negative effect on returns.
  • The value of equities and equity-related securities can be affected by daily stock and currency market movements.
  • For a complete overview of all risks, please see the Prospectus.

[1] Source: VettaFi, Bloomberg. Data as of 30.06.2026

[2] Source: VettaFi, Bloomberg. Data as of 30.06.2026

[3] https://www.eia.gov/outlooks/steo/

[4] Source: VettaFi, Bloomberg. Data as of 30.06.2026

[5] https://www.eia.gov/naturalgas/data.php#imports

[6] https://etfdb.com/energy-infrastructure-content-hub/geopolitical-shocks-power-north-american-lng-boom/

[7] https://etfdb.com/energy-infrastructure-content-hub/robust-gas-backlogs-drive-growth/

[8] Source: VettaFi. Data as of 30.06.2026

[9] https://etfdb.com/energy-infrastructure-content-hub/midstream-growth-trend-continues/

[10] https://etfdb.com/energy-infrastructure-content-hub/1q26-midstream-buybacks-steady-start/

[11] https://www.keyera.com/news-and-stories/news-releases/keyera-announces-acquisition-of-remaining-50-interest-in-kaps/

[12] https://www.keyera.com/news-and-stories/news-releases/keyera-provides-business-update-and-2029-growth-outlook-following-completion-of-plains-ngl-acquisition/

[13] https://ir.plains.com/news-releases/news-release-details/plains-all-american-pipeline-and-plains-gp-holdings-provide-1

[14] https://investors.ventureglobal.com/news/news-details/2026/Venture-Global-and-Atlantic-SEE-Announce-Expansion-of-Long-Term-LNG-Sales-and-Purchase-Agreement-with-Greece/default.aspx

[15] https://investors.ventureglobal.com/news/news-details/2026/Venture-Global-and-EnBW-Announce-New-LNG-Purchase-Agreements/default.aspx

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