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North American Energy Infrastructure Fund (EMLP) Hits a 52-Week High

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The First Trust North American Energy Infrastructure Fund (EMLP - Free Report) is probably a suitable pick for investors looking for momentum. EMLP hit a 52-week high and is up 22.6% from its 52-week low price of $21.13/share.

Let’s take a look at FXN and its near-term outlook to gauge where it might be headed.

EMLP in Focus

The First Trust North American Energy Infrastructure Fund is an actively managed exchange-traded fund. The fund will invest at least 80% of its net assets (including investment borrowings) in equity securities of companies deemed by Energy Income Partners, LLC, the Fund's investment sub-advisor, to be engaged in the energy infrastructure sector. It has AUM of $2.23 billion and charges an expense ratio of 96 basis points.

Why the Move?

Investors are closely tracking the energy sector, which is showing strength as global demand and economic growth levels are on the path of recovery from the pandemic lows. The coronavirus vaccine rollout is gradually controlling the outbreak's spread across the globe. The optimism surrounding the reopening of global economies and increasing demand is painting a rosy picture for the cyclical sectors.

Oil prices have been rising since the beginning of 2022. The upside in crude oil prices is triggered by various factors like easing Omicron variant concerns, supply shortages, and geopolitical tensions in Eastern Europe and the Middle East.This is making funds like EMLP an impressive investment option.

More Gains Ahead?

It seems like the First Trust North American Energy Infrastructure Fund will remain strong, with a positive weighted alpha of 16.50, which gives cues of a further rally.


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