This ETF Pays an 8% Yield and Is Poised for Strong Growth in 2026

Core Viewpoint - The Alerian MLP ETF offers a compelling investment opportunity by providing high yields without the tax complications associated with master limited partnerships (MLPs) [1][2]. Distribution and Performance - The Alerian MLP ETF has a 30-day SEC yield of 8.1% and a distribution yield just below 8% over the past year, with significant distributions from its MLP holdings [3]. - The ETF has maintained an average yield of over 6.6% since its inception in August 2010 and has paid distributions for 61 consecutive quarters [4]. - The annual expense ratio of the ETF is 0.85%, which is higher than most index ETFs, but the distributions compensate for this cost [4]. Growth Potential - The Alerian MLP ETF has achieved an impressive annualized total return of 25.7% over the last five years, with expectations for growth in 2026 and beyond [6]. - A key growth driver for the MLPs in the ETF's portfolio is the surge in data center construction, with Energy Transfer LP signing agreements to supply natural gas to major data centers [7]. - Other holdings, such as Enterprise Products Partners LP, are investing significantly in capital projects, with $5.1 billion under construction, driven by increasing demand for liquid natural gas (LNG) and artificial intelligence (AI) [8].