SS&C ALPS Advisors' midstream ETFs have declared distributions, building upon the segment's strong track record of generating attractive income for investors. The Alerian MLP ETF (AMLP) and the Aleria... ...

Group 1: VettaFi and Indexing Business - VettaFi, formed from the merger of multiple indexing businesses, was recently acquired by TMX Group and now manages over $75 billion in assets across various indices [2] - The company assists clients in product development, offering services such as formalizing rulebooks, conducting backtesting, and evaluating liquidity [2] - Ongoing management and education are essential for partners to differentiate themselves in the crowded ETF market, which has over 4,000 products [3] Group 2: Thematic ETFs and Portfolio Management - Thematic ETFs are becoming increasingly important, with a focus on analyzing portfolio overlap to enhance existing allocations [3] - Key thematic areas attracting investor demand include artificial intelligence and nuclear energy, with advisors typically allocating 5-10% of portfolios to these strategies [3] Group 3: Gold Market Dynamics - Gold prices are driven by strong physical demand from China and central banks, record ETF inflows, and macroeconomic factors such as a weaker U.S. dollar and inflation uncertainty [4] - Gold serves as a portfolio diversifier and can coexist with bitcoin, fulfilling different roles within an investment strategy [4] Group 4: Notable ETFs - Alerian MLP ETF (AMLP) has over $10 billion in assets and recently celebrated its 15-year anniversary [5] - VictoryShares Free Cash Flow ETF (VFLO) is approaching $5 billion in assets despite being less than three years old [5] - The ROBO Global ETF Suite focuses on robotics and artificial intelligence, while the Range Nuclear Renaissance Index (NUKZ) expands VettaFi's thematic indexing in nuclear energy [5]

Core Insights - The recent rate cut by the Federal Reserve may lead to lower yields on bonds, prompting investors to seek alternative income sources [1][2] - Midstream Master Limited Partnerships (MLPs) and corporations are highlighted as attractive options due to their higher yields compared to traditional fixed income benchmarks [1][3] Rate Cuts and Impact on Bonds - The Federal Reserve has reduced rates by 25 basis points and may consider further cuts, which could negatively affect income-focused investors, particularly those nearing retirement [2] Midstream MLPs and Yields - Midstream MLPs and C-Corps provide appealing income and diversification benefits, with the Alerian MLP Infrastructure Index (AMZI) offering a 7.8% indicative yield as of September 23, compared to a ten-year average yield of 8.2% [3][4] - AMZI's yield surpasses the Bloomberg USAgg Index's yield of 4.3% and the Bloomberg US Corporate High Yield Index's yield of 6.6% [4] Diversification and Correlation - MLPs can enhance income portfolios while offering diversification, as evidenced by AMZI's low ten-year correlation of 0.1 with the Agg [4] - The Alerian Midstream Energy Select Index (AMEI) provides a 5.3% yield, with a ten-year average yield of 6.1%, consisting of approximately 75% U.S. and Canadian midstream corporations and 25% MLPs [4] Comparison with Other Income Investments - Both AMZI and AMEI yield more than other equity income investments, such as REITs at 4.0% and the S&P 500 Utilities Index at 2.8% [5] - MLPs or midstream investments typically represent a 3-5% allocation in an income portfolio, which can significantly enhance overall portfolio yields [5]

Group 1 - The Alerian MLP ETF (AMLP) has reached a significant milestone after years of providing simplified exposure to Master Limited Partnerships (MLPs) [1] - MLPs are recognized for their attractive income potential, making them appealing to investors seeking yield [1] - The ETF has successfully navigated market challenges and continues to attract investor interest [1]