NEW YORK (TheStreet) -- West Texas Intermediate crude oil is higher by almost 1% on Tuesday, after plunging over 4% on Monday. The commodity is now lower by 32% in the past three months, which has really taken a toll on energy stocks.

But that pain can be a long-term investor's gain. That's why Michael Ball, portfolio manager at Weatherstone Capital Management, told TheStreet TV's Gregg Greenberg he likes the Energy Select Sector SPDR ETF (XLE - Get Report) . 

HYD Chart
Alerian MLP ETF AMLP Market Vectors High-Yield Municipal Index HYD data by YCharts

The ETF is down 20% in the past three months and 13% on the year. However, the selloff has created a good value for investors and has made the dividend more attractive. The energy sector is now the third highest yielding sector, he said. 

Another high paying fund is the Alerian MLP ETF (AMLP - Get Report) , which yields 6.5%. The sector is not directly affected by fluctuating oil prices, which makes for a much more stable business, Ball said.

The pipeline and storage business is an attractive alternative way to play the energy sector, Ball added. 

And in an effort to step away from energy, but not necessarily from higher yields, Ball likes the Market Vectors High-Yield Municipal Index ETF (HYD - Get Report) , which yields 5%. 

Municipal bonds are cheaper right now because they are out of favor among many investors. The Detroit bankruptcy and news of other struggling cities have put a damper on the group, he said. 

But yields are currently 125 basis points above the historical average. This is an attractive scenario for investors, Ball said, because they'll either receive a higher-than-usual return on their investment, or yields will go down and the investment principal will increase. 

-- Written by Bret Kenwell 

Follow @BretKenwell