MLP Funds’ Inflow Rises despite Sector Headwinds

MLP funds’ flow

MLP funds’ flow has continued to rise in recent months despite sector headwinds, which we discussed in the previous article. This rise could be due to MLPs’ earnings growth and strong crude oil tailwinds.

The Alerian MLP ETF (AMLP), which is currently the largest MLP ETF in terms of market capitalization, saw an inflow of $353.7 million in the first half of this year. At the same time, the JPMorgan Alerian MLP exchange-traded note (AMJ) saw a net inflow of $43.1 million.

MLP Funds’ Inflow Rises despite Sector Headwinds

MLPs versus other investments

The Alerian MLP ETF has seen higher fund flow than the SPDR S&P 500 ETF (SPY) and the Utilities Select Sector SPDR ETF (XLU). While SPY saw a $20.8 billion fund outflow during H1 2018, XLU saw a net inflow of $328.4 million. AMLP’s strong fund inflow could be positive for MLPs going forward. For a detailed analysis of MLPs’ fund flow during the second quarter, read Top MLP ETFs: Fund Flows Rose in Q2 2018.