Two Energy ETFs to Participate in The Energy Rally (While Staying Insulated From Disruptions)

Why It Matters

These ETFs let investors capture energy sector gains while limiting exposure to oil price swings and geopolitical supply shocks, offering a more stable, defensively positioned investment.

Key Takeaways

• Energy sector leads S&P 500 YTD, outperforming peers
• AMLP and ENFR offer fee‑based exposure, limiting oil price leverage
• Domestic U.S. assets shield these ETFs from Middle‑East supply shocks
• Global LNG disruptions boost North American gas export infrastructure demand
• ETFs provide stable, lower‑volatility participation in energy rally

Summary

The video highlights two specialized energy exchange‑traded funds—AMLP, which tracks master limited partnerships, and ENFR, focused on energy infrastructure—as vehicles to capture the broader energy rally while tempering volatility. Both funds have benefited from the sector’s YTD outperformance, yet their fee‑based business models decouple earnings from crude‑price swings, offering investors a more predictable cash‑flow profile.

Key points include the domestic orientation of their underlying assets, primarily pipelines and storage facilities located in the United States, which insulates them from geopolitical disruptions such as Strait of Hormuz tensions. Additionally, the discussion notes that recent attacks on Qatar’s LNG liquefaction complex have tightened global LNG supplies, creating tailwinds for North American gas‑export infrastructure that underpins ENFR’s holdings.

The presenter cites the Qatar incident—missiles and drones targeting a centralized LNG facility—as a concrete example of how external shocks can elevate the strategic value of domestic energy assets. By contrast, pure oil producers remain fully exposed to price volatility, whereas AMLP and ENFR deliver steadier returns through fee‑generated revenue streams.

For investors, these ETFs represent a way to participate in the energy sector’s upside without the full brunt of commodity price volatility or geopolitical risk, positioning them as defensive yet growth‑aligned choices in a market still driven by rising energy demand.

Original Description

In this episode of Spotlight, Stephanie Stanton @etfguide interviews Paul Baiocchi, CFA & Head of Fund Sales and Strategy at SS&C ALPS Advisors.

Volatility in the Middle East continues to put upward pressure on oil and other commodity prices, causing some investors to rethink their positions. Today we're taking a closer look at the energy market, and how investors can protect themselves during this tense time in geopolitics.

We discuss the SummerHaven Dynamic Commodity Strategy No K-1 Fund (SDCI), as well as the Alerian MLP ETF (AMLP), the Alerian Energy Infrastructure ETF (ENFR), the ALPS Clean Energy ETF (ACES), the USCF Sustainable Battery Metals Strategy Fund (ZSB), the ALPS Equal Sector Weight ETF (EQL), and the ALPS Electrification Infrastructure ETF (ELFY).

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To learn more about SS&C ALPS Advisors visit

http://www.alpsfunds.com

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