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MLP ETF (AMZA) Hits New 52-Week High

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For investors seeking momentum, InfraCap MLP ETF (AMZA - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 23.3% from its 52-week low price of $28.89/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:

AMZA in Focus

InfraCap MLP ETF is an actively managed ETF providing exposure to midstream master limited partnerships (MLPs) with an emphasis on high current income. It charges 1.64% in annual fees (see: all the MLP ETFs here).

Why the Move?

The Master Limited Partnerships (MLPs) corner of the broad energy space has been an area to watch lately, given the rise in oil prices. MLPs represent an attractive investment option for income-focused investors as these pay out substantially all of their income to investors on a regular basis. These have relatively consistent and predictable cash flows, making them safer and less risky than the other plays in the broader energy space. 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, AMZA might remain strong, given a weighted alpha of 13.80 and a higher 20-day volatility of 25.37%. There is definitely still some promise for investors who want to ride on this surging ETF.

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