3 Midstream Dividend ETFs Yielding Over 5% That Are Also Beating the Market

Core Insights - Midstream dividend ETFs are an overlooked investment opportunity that can provide significant income, outperforming traditional income vehicles with yields sometimes double that of competitors [2][7] - The midstream energy sector, which includes pipeline operators and storage facility owners, benefits from a volume-based fee structure that protects against daily energy price fluctuations, allowing for consistent dividend payments [3][4] Group 1: Midstream Energy Sector Performance - North American midstream companies have seen success post-2022, with the U.S. becoming Europe's largest energy source, leading to stable demand for oil transportation [4] - Midstream dividend ETFs currently yield between 5.65% and 7.73%, showcasing their potential for income-focused investors [7] Group 2: Alerian MLP ETF (AMLP) - The Alerian MLP ETF is the largest fund in the midstream sector and offers the highest yield among major midstream ETFs at 7.73% [5][6] - Despite historical underperformance in the 2010s, AMLP has started the 2020s strongly, with its top holdings, including Energy Transfer LP, showing significant gains [5][6] - The fund has a relatively high expense ratio of 0.85%, but the substantial yield compensates for this, and reinvesting dividends can lead to significant portfolio growth [6]