Alerian Energy Infrastructure ETF Declares First Quarter Distribution of $0.35568
The Alerian Energy Infrastructure ETF (NYSE Arca: ENFR) has announced its first quarter 2025 distribution of $0.35568 on Tuesday, February 11, 2025. This dividend is payable to shareholders of record on Wednesday, February 12, 2025.
ENFR Distributions
The ex-date for the distribution is set at Wednesday, February 12, 2025, which marks the date by which investors must own shares in order to be eligible to receive the payment. The record date is also Wednesday, February 12, 2025, and the payable date is Tuesday, February 18, 2025.
ALPS Portfolio Solutions Distributor, Inc. serves as the distributor for the Alerian Energy Infrastructure ETF, and it also handles the distribution of the Alerian MLP ETF and the ALPS | Alerian Energy Infrastructure Portfolio. For any inquiries regarding these funds or their distributions, please contact [email protected] or call 1-866-759-5679.
Investment Objectives, Risks, Charges, and Expenses
When considering an investment in the ENFR, it is essential to carefully review its prospectus. This document provides detailed information on the fund's investment objectives, risks, charges, and expenses. To obtain a copy of the prospectus or for more information about the fund, please call 1-866-759-5679 or visit www.alpsfunds.com.
It is crucial to note that shares of ETFs are bought and sold at market price (not net asset value) and are not individually redeemable. All investments involve risks, including the loss of principal amount invested, and it is essential to understand these risks before making an investment decision.
Investments in Master Limited Partnerships
The ENFR invests primarily in securities of Master Limited Partnerships (MLPs). These investments carry unique risks that differ from those associated with common stocks. MLPs are controlled by their general partners, which may have conflicts of interest and limited fiduciary duties to the partnership.
A significant portion of the benefits derived from the fund's investment in MLPs depends on the partnerships being treated as pass-through entities for federal income tax purposes. If these partnerships were to be taxed as corporations, it could negatively impact the fund's ability to meet its investment objective and reduce the amount of cash available to pay or distribute to shareholders.
Legislative, judicial, or administrative changes and differing interpretations could affect the value of an investment in MLPs and therefore the value of a shareholder's investment in the ENFR. These risks are inherent in investments in MLPs and should be carefully considered before investing.
Investment in Canadian Securities
The ENFR may also invest in securities denominated in foreign currencies, primarily Canadian dollars. This exposes the fund to currency exchange rate fluctuations, which could negatively impact its return.
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Risks Associated with Energy Infrastructure Sector
Investments in the energy infrastructure sector are subject to a range of risks, including reduced volumes of natural gas or other energy commodities available for transporting, processing, or storing. Changes in the regulatory environment, extreme weather events, and rising interest rates could also negatively impact the fund's performance.
Rising interest rates may lead to a higher cost of capital, driving investors away from this sector and into more attractive investment opportunities. These risks are inherent in investments in the energy infrastructure sector and should be carefully considered before investing.
Passive Management Investment Approach
The ENFR employs a passive management - or indexing - investment approach. This involves tracking the performance of its underlying index without actively buying or selling securities unless they are added to or removed from the index.
Unlike many other investment companies, the ENFR does not engage in active portfolio management. Its investment decisions are driven by the composition of the underlying index, rather than any attempt to beat the market or achieve a specific return.
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Conclusion
The Alerian Energy Infrastructure ETF has declared its first quarter 2025 distribution of $0.35568, payable to shareholders of record on Wednesday, February 12, 2025. The fund's investment objectives, risks, charges, and expenses should be carefully considered before investing, as should the unique risks associated with Master Limited Partnerships and investments in Canadian securities.
The passive management investment approach employed by the ENFR involves tracking its underlying index without actively buying or selling securities unless they are added to or removed from the index. This strategy has been successful in helping the fund meet its investment objective and deliver returns to shareholders.
Investors should carefully review the prospectus of the ENFR and consider their own financial objectives, risk tolerance, and time horizon before making an investment decision.