Midstream Energy ETF Tops S&P 500 with Stable Returns and Lower Volatility

The Tortoise North American Pipeline ETF (TPYP) is gaining attention from investors seeking stable returns and lower volatility. Unlike oil-linked ETFs, TPYP focuses on midstream energy infrastructure in the US and Canada, aiming to provide fee-based returns over commodity price fluctuations.

Over five years, TPYP has outperformed the S&P 500 Total Return Index with a 20% total return versus the market's 15%. The ETF also boasts lower volatility compared to its peers. Geopolitical disruptions and increased US LNG exports are driving robust demand for midstream energy infrastructure.

TPYP's expense ratio of 0.40% is below the median, making it an attractive option for cost-conscious investors. The fund's portfolio consists mainly of US-listed assets (76%) and natural gas pipelines (59%). Top holdings are concentrated, led by The Williams Companies.