MDST: Active Midstream ETF, Double-Digit Distribution Yield, Below-Average Returns

  • MDST is an actively-managed, midstream energy ETF selling covered calls. MDST's 10.2% distribution yield is incredibly strong, but its covered call strategy caps upside and leads to underperformance in bull markets. The fund compares unfavorably to other midstream energy funds, and covered call funds, on several important metrics.