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MLP ETF (AMLP) Hit a 52-Week High

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For investors seeking momentum, Alerian MLP ETF (AMLP - Free Report) is probably on radar. The fund just hit a 52-week high and is up 41.4% from its 52-week low price of $30.04/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

AMLP in Focus

The 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. The product charges 87 bps in annual fees. The fund yields 5.20% annually.

Why the Move?

The MLP corner of the energy market has been an area to watch lately, as this overlooked segment is making great strides amid volatility in the stock market. MLPs have relatively consistent and predictable cash flows, making them safer and less risky than the other plays in the broader energy space. These represent an attractive investment option for income-focused investors as MLPs pay out substantially all of their income to investors on a regular basis. In addition to high yields and the potential for capital appreciation, MLPs also have lower volatility and provide diversification benefits to the portfolio.

More Gains Ahead?

Currently, AMLP might remain strong given a positive weighted alpha of 22.70. As a result, there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.

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