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MLP ETN (AMJ) Hit a 52-Week High

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For investors seeking momentum, JPMorgan Alerian MLP Index ETN (AMJ - Free Report) is probably on radar. The fund just hit a 52-week high and is up 30.9% from its 52-week low price of $19.04/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:

AMJ In Focus

The underlying Alerian MLP Index is a cap weighted, float-adjusted index created to provide a complete benchmark for investors to track the energy MLP sector. The product charges 85 bps in annual fees.

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 and higher oil prices. 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.

More Gains Ahead?

Currently, AMJ might remain strong given a positive weighted alpha of 24.00. 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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