EIPI: FT ENERGY INCOME PARTNERS ENHANCED INCOME ETF
ETF Education Report: FT Energy Income Partners Enhanced Income ETF (EIPI)
What this ETF is trying to do
The FT Energy Income Partners Enhanced Income ETF (EIPI) is an exchange-traded fund that focuses on the energy sector. It holds a variety of companies, including those involved in energy infrastructure and production. The goal of this fund is to provide income to its investors through regular cash distributions.
What the numbers show
When looking at how an ETF performs, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price. For EIPI, the year-to-date (YTD) price return is approximately 10.87%. Over the last year, the one-year price return was approximately 11.88%.
• Total Return: This includes both the share price change and the cash distributions paid out to investors. The YTD total return is approximately 16.67%, and the one-year total return is approximately 19.98%.
To visualize the price change, we can look at an estimated price from roughly one year ago, which was $19.69. The current price is $22.03.
Income and distribution explanation
This ETF is designed to pay out cash to shareholders. The distribution yield is approximately 6.81%. This number describes the cash distributions relative to the current ETF price. The fund usually pays out monthly, with 12 payments recorded over the last year.
It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Some investors worry that high payouts might cause this. However, for EIPI, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in the portfolio (note that this is a partial list):
• Enterprise Products Partners LP: 8.27%
• Energy Transfer LP: 6.66%
• MPLX LP Partnership Units: 4.66%
• Kinder Morgan Inc Class P: 3.87%
• ExxonMobil Holdings Corp: 3.67%
• Shell (SHEL): 3.07%
• Morgan Stanley Instl Liqudty Trs Instl: 3.01%
• Oneok Inc: 2.99%
• National Fuel Gas Co: 2.59%
• Duke Energy Corp: 2.48%
Pros
• The fund has shown positive price returns and total returns over the last year.
• It provides a regular monthly distribution frequency.
Cons
• The fund is focused on the energy sector, which can be subject to specific market changes.
• The list of holdings provided is only a partial view of the total 126 holdings.
Beginner takeaway
When looking at EIPI, notice the difference between the price return and the total return. The total return is higher because it accounts for the cash distributions paid to investors. Always remember that while high yields provide income, they are separate from the growth of the share price itself.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ENTERPRISE PRODUCTS PARTNERS LP | EPD | 8.27% |
| 2 | ENERGY TRANSFER LP | ET | 6.66% |
| 3 | MPLX LP PARTNERSHIP UNITS | MPLX | 4.66% |
| 4 | KINDER MORGAN INC CLASS P | KMI | 3.87% |
| 5 | EXXONMOBIL HOLDINGS CORP | XOM | 3.67% |
| 6 | n/a | SHEL | 3.07% |
| 7 | MORGAN STANLEY INSTL LQUDTY TRS INSTL | MISXX | 3.01% |
| 8 | ONEOK INC | OKE | 2.99% |
| 9 | NATIONAL FUEL GAS CO | NFG | 2.59% |
| 10 | DUKE ENERGY CORP | DUK | 2.48% |