Advertisement
Canada markets closed

  • S&P/TSX

    21,708.44
    +52.39 (+0.24%)
     

  • S&P 500

    5,011.12
    -11.09 (-0.22%)
     

  • DOW

    37,775.38
    +22.07 (+0.06%)
     

  • CAD/USD

    0.7261
    -0.0003 (-0.04%)
     

  • CRUDE OIL

    82.62
    -0.11 (-0.13%)
     

  • Bitcoin CAD

    87,515.27
    +2,613.84 (+3.08%)
     

  • CMC Crypto 200

    1,313.86
    +428.32 (+48.43%)
     

  • GOLD FUTURES

    2,394.20
    -3.80 (-0.16%)
     

  • RUSSELL 2000

    1,942.96
    -4.99 (-0.26%)
     

  • 10-Yr Bond

    4.6470
    +0.0620 (+1.35%)
     

  • NASDAQ futures

    17,527.75
    -19.50 (-0.11%)
     

  • VOLATILITY

    18.00
    -0.21 (-1.15%)
     

  • FTSE

    7,877.05
    +29.06 (+0.37%)
     

  • NIKKEI 225

    38,079.70
    +117.90 (+0.31%)
     

  • CAD/EUR

    0.6822
    +0.0020 (+0.29%)
     

MLP ETF (AMLP) Hits a 52-Week High

Sanghamitra Saha
·2 min read

For investors looking for momentum, Alerian MLP ETF (AMLP) is probably a suitable pick. The fund just hit a 52-week high and is up about 95% from its 52-week low price of $18.93/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

AMLP in Focus

The underlying Alerian MLP Infrastructure Index is capped, float-adjusted, capitalization-weighted composite of energy infrastructure Master Limited Partnerships that earn the majority of their cash flow from the transportation, storage, and processing of energy commodities. It charges 90 basis points in annual fees (see all Energy ETFs here).

Why the Move?

Oil prices have been hovering around the 2018-level on hopes of demand recovery. Analysts are expecting a recovery in oil demand this year as growing vaccination, reopening of economies and summers will help in pulling it up.

ADVERTISEMENT

Fitch Ratings expects the operating environment for the North American midstream sector to improve in 2021, thanks to recovering U.S. and Canadian oil & gas production helped by marginally higher prices. If this was not enough, lower capex budgets have boosted cash flow profiles and Fitch expects 2021 median FCF for midstream to be positive.

More Gains Ahead?

It seems like the fund will remain strong in the near term, with a positive weighted alpha of 71.04, which gives cues of further rally. Operating backdrop is also in favor of the fund.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Alerian MLP ETF (AMLP): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report