##  [# MLPs Resurge as Energy Infrastructure Demand Grows](/sections/news/mlps-resurge-energy-infrastructure-demand-grows) 

 

# MLPs Resurge as Energy Infrastructure Demand Grows

 

 

Master limited partnerships offer attractive yields and inflation protection while benefiting from AI-driven natural gas consumption.



 

 

 

 

 [![DJ](/sites/default/files/styles/author_image_icon/public/2024-07/5.png?itok=LA-jevm_)](/authors/dj-shaw) 

[By DJ Shaw ](/authors/dj-shaw)

 Feb 25, 2025

 Edited by: Ron Day

 

 

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[![What is an MLP ETF?](/sites/default/files/inline-images/What%20is%20a%20MLP%20ETF_1.png)](/sites/default/files/inline-images/What%20is%20a%20MLP%20ETF_1.png)[Master limited partnership](/topics/mlps) investments are experiencing renewed interest as the infrastructure supporting natural gas transportation becomes increasingly critical in today's evolving energy landscape.

Over the past few years, the MLP sector has strengthened its financial position, according to Rene Reyna, head of thematic and specialty ETF strategy at Invesco. Companies have seen leverage come down and distribution coverage ratios start to improve, positioning the sector for renewed growth.

For investors seeking income and inflation protection in a volatile market, MLPs represent a unique opportunity to access energy infrastructure without direct exposure to oil price swings, Reyna told etf.com.

With 19 MLP ETFs collectively managing more than $18 billion in assets, according to etf.com data, investors have multiple options to gain exposure to this specialized sector.

What distinguishes MLPs from traditional energy stocks is their business model based on charging fees for transporting energy rather than profiting directly from energy prices, Reyna said.

"What's unique about the space is \[its\] ability to generate fee-based revenue from transporting or storing energy products without being directly tied to oil and gas price volatility," Reyna explained.

## Powering the AI Revolution

The most significant driver behind renewed interest in MLPs is the surge in energy demand from artificial intelligence infrastructure, Reyna said.

"We're realizing that the amount of energy needed to support all the different models that are running for AI, large language models, they're just very energy intensive, and we don't have the infrastructure today to satisfy that demand," he said.

This energy gap has created opportunities for natural gas infrastructure, with Reyna noting that MLPs are "serving as solutions in the near term" for the growing power needs of AI operations.

This increasing demand, coupled with the improved financial health of MLPs, has enhanced their appeal as income-generating investments.

***Additional reading:*** [***Equity ETFs: An Intro to MLPs***](https://www.etf.com/sections/etf-basics/equity-etfs-intro-mlps)

According to Reyna, [Invesco's (IVZ)](/stock/IVZ) recently launched [**SteelPath MLP &amp; Energy Infrastructure ETF (PIPE)**](/pipe) currently offers yields around 5%, with distribution coverage ratios at historically strong levels—approximately twice the traditional safety margin for payouts.

Beyond attractive yields, MLPs offer built-in inflation protection through their contract structures and tangible asset base, Reyna said. He emphasized the unique role MLPs can play for investors constructing diversified portfolios.

"This can help satisfy a particular goal in a portfolio that you may not be able to get with some of the other sort of broader components of the energy value chain," he said.

 
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## Top 10 MLP ETFs by AUM

**Ticker**

**Fund Name**

**Issuer**

**AUM**



[AMLP](/AMLP)

Alerian MLP ETF

SS&amp;C

$10.73B



[EMLP](/EMLP)

First Trust North American Energy Infrastructure Fund

First Trust

$3.17B



[MLPX](/MLPX)

Global X MLP &amp; Energy Infrastructure ETF

Mirae Asset Global Investments Co., Ltd.

$2.83B



[MLPA](/MLPA)

Global X MLP ETF

Mirae Asset Global Investments Co., Ltd.

$1.83B



[AMJB](/AMJB)

ALERIAN MLP INDEX ETNS DUE JANUARY 28, 2044

JPMorgan Chase

$897.57M



[TPYP](/TPYP)

Tortoise North American Pipeline Fund

Tortoise

$722.05M



[ATMP](/ATMP)

Barclays ETN+ Select MLPETN

Barclays

$528.00M



[AMZA](/AMZA)

InfraCap MLP ETF

Virtus Investment Partners

$453.65M



[UMI](/UMI)

USCF Midstream Energy Income Fund ETF

Marygold

$368.03M



[ENFR](/ENFR)

Alerian Energy Inrastructure ETF

SS&amp;C

$290.21M







 

 

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  A graduate of The University of Texas, Arlington with a BA in Communications, DJ has covered retirement plans, mortgage news, and financial advisor…   [View Bio](/authors/dj-shaw)

 



 

 


 Related Topics  [MLPs](http://www.etf.com/topics/mlps) 

 [Energy](http://www.etf.com/topics/energy) 

 [Infrastructure](http://www.etf.com/topics/infrastructure)