2023 Midstream Oil and Gas ETF Rankings: Which Top Performers Led the Pack

The midstream oil and gas ETF sector demonstrated remarkable resilience throughout 2023, outpacing broader energy investments thanks to their defensive characteristics, robust M&A momentum, and expanding dividend distributions. Investors have long gravitated toward midstream infrastructure vehicles for their track record of delivering substantial income streams and attractive long-term returns. Four core players dominated this space: the $7.3 billion Alerian MLP ETF (AMLP), the $2.4 billion First Trust North American Energy Infrastructure Fund (EMLP), the $1.5 billion Global X MLP ETF (MLPA), and the $975 million Global X MLP & Energy Infrastructure ETF (MLPX).

Assets Under Management and Capital Flows

Despite compelling valuations across the midstream oil and gas ETF universe, capital deployment told an uneven story in 2023. AMLP’s substantial asset base proved magnetic, capturing $276 million in net inflows throughout the year—far exceeding MLPA’s more modest $29 million intake. The picture darkened for EMLP and MLPX, which experienced net redemptions of $346 million and $162 million respectively. AMLP’s momentum in attracting capital reflected both its scale advantage and its superior performance trajectory relative to competitors in the midstream energy space.

Total Return Performance Breakdown

When measured on a total return basis through year-end 2023, performance differentiation among these four midstream oil and gas ETF vehicles became strikingly apparent. AMLP delivered the strongest results, climbing 20.9%, while MLPA and MLPX posted more moderate gains of 15.7% and 14.3% respectively. EMLP significantly underperformed this cohort, advancing just 6.6%—a material lag attributable to its substantial 45% weighting in utility stocks rather than pure midstream exposure. This sector mismatch, combined with EMLP’s steeper 95 basis point fee structure (compared to AMLP’s 85 basis points and MLPA/MLPX’s lean 45 basis points), created persistent headwinds.

Fee Structures: A Hidden Performance Driver

Cost efficiency remains a critical differentiator in the midstream ETF landscape. AMLP and MLPA/MLPX operate at markedly lower cost tiers—85 and 45 basis points respectively—positioning them to retain more of gains for shareholders. EMLP’s 95 basis point charge places it at a significant competitive disadvantage, particularly when layered atop its sector-allocation challenges. Over extended timeframes, these fee differentials compound into meaningful return erosion for cost-unconscious investors.

Dividend Yield Comparison: Income Generation Metrics

Income seekers gravitate toward midstream oil and gas ETF solutions specifically for their outsized yield profiles. AMLP maintained the highest indicated yield at 8.2% as of year-end, establishing clear income leadership. MLPA followed at 7.8%, while MLPX offered 5.4% and EMLP lagged at 4.1%. This yield hierarchy aligned closely with each fund’s performance ranking, suggesting that superior capital appreciation and sustainable dividend payouts operated in tandem for top-performing vehicles within the midstream infrastructure segment.

Investment Takeaway

The 2023 midstream oil and gas ETF results underscore the importance of balanced evaluation across multiple metrics—asset scale, performance history, expense ratios, and yield sustainability all warrant investor scrutiny. AMLP’s multi-faceted advantage in total returns, capital attraction, and dividend generation positioned it as the clear category leader, while structural factors and cost considerations explained the wider performance dispersion among competing midstream energy vehicles.