Buy This ETF if You Want to Benefit From High Oil Prices Without Wild Swings

"Midstream firms generate revenue from long-term, fee-based contracts for transporting oil and gas, making their cash flow more predictable. The fund kicks that cash back to holders."

"The USCF Midstream Energy Income Fund (UMI) is an actively managed ETF that holds 20-25 high-quality midstream energy companies, providing a smoother investment experience."

"Over the past year, UMI returned 25%, while the Energy Select Sector SPDR ETF, which focuses on major producers, returned 47%, capturing roughly half the oil rally."

WTI crude oil prices surged from $57.97 to over $100, benefiting oil producers while causing volatility for shareholders. Midstream companies, which own pipelines and storage, charge fees based on long-term contracts, ensuring revenue stability regardless of crude prices. The USCF Midstream Energy Income Fund (UMI) invests in high-quality midstream firms, yielding approximately 3.7% annually. While UMI returned 25% over the past year, it lagged behind the 47% return of the Energy Select Sector SPDR ETF, reflecting the trade-off for reduced volatility in midstream investments.

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