Top MLP Funds Recorded Net Inflows in October

The top MLP funds saw net inflows in October. The Alerian MLP ETF (AMLP) had net inflows of $105.7 million for the month. The Global X MLP ETF (MLPA) had net inflows of $55.1 million in October.

Plus, the First Trust North American Energy Infrastructure Fund (EMLP) and the Global X MLP & Energy Infrastructure ETF (MLPX) witnessed net inflows in October. In comparison, the InfraCap MLP ETF (AMZA) saw net outflows of $6.0 million.

Top MLP Funds Recorded Net Inflows in October

MLP positive fund flows in Q3 2019

AMLP, EMLP, and MLPA saw positive fund flows in the third quarter. AMLP recorded net inflows of $204 million in Q3. EMLP and MLPA witnessed net inflows of $43 million and $92 million, respectively. In comparison, AMZA and MLPX saw net outflows during the quarter. Together, the five funds saw net inflows of $126 million in Q3 2019.

The above graph shows the fund flows into the top MLP ETFs over the past four years. The diminished fund flows in the last five quarters likely contributed to the lower MLP stock prices.

MLP fund flows negative in 2019

The positive net flows in October and in Q3 follow two straight quarters of negative flows. The five MLP funds together saw net outflows of $252 million in Q2 and $95 million in Q1. Year-to-date, the total flows in the five funds total -$11 million.

The negative fund flows mirror the depressed MLP stock prices. While AMLP has seen net outflows of $355 million so far in 2019, EMLP and MLPA witnessed inflows of $140 million and $221 million, respectively.

AMLP’s holdings

The Alerian MLP ETF (AMLP), the Global X MLP ETF (MLPA), and the InfraCap MLP ETF (AMZA) invest primarily in MLPs. However, the First Trust North American Energy Infrastructure Fund (EMLP) and the Global X MLP & Energy Infrastructure ETF (MPLX) invest in midstream companies and MLPs. With more MLPs converting into C corporations, the universe of investible MLPs has dwindled significantly.

Enterprise Products Partners (EPD), MPLX (MPLX), Magellan Midstream Partners (MMP), and Energy Transfer (ET) are the top four holdings of AMLP. Together, the four holdings form around 39% of the ETF.

MLPA’s holdings

Like AMLP, EPD, ET, MMP, and MPLX are Global X MLP ETF’s (MLPA) top four holdings. Together, the four form around 35% of the ETF.