Back to top

Image: Bigstock

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

Read MoreHide Full Article

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 $23.00/share.

Let’s take a look at EMLP 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 ETF. 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 $2.50 billion and charges an expense ratio of 95 basis points.

Why the Move?

The coronavirus vaccine rollout is gradually helping control the spread of the outbreak across the globe. Accordingly, the global demand and economic growth levels are on the path to recovery from the pandemic-led slump. The optimism surrounding the gradual reopening of global economies and increasing demand is painting a rosy picture for cyclical sectors.

The energy sector has also been gaining investor attention on the latest rally in oil prices. Oil prices have been rallying amid the Russia-Ukraine geopolitical crisis. Russia’s move is leading to a rise in oil prices as it is among the world’s largest suppliers of oil and natural gas. There are other factors supporting oil prices. The coronavirus vaccine rollout is gradually helping control the outbreak's spread across the globe. The optimism surrounding the gradual reopening of global economies and increasing demand is painting a rosy picture for cyclical sectors. 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 22.90, which gives cues of a further rally.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


First Trust North American Energy Infrastructure ETF (EMLP) - free report >>