Back to top

Image: Bigstock

MLP ETF (AMLP) Hit a New 52-Week High

Read MoreHide Full Article

For investors seeking momentum, Alerian MLP ETF (AMLP - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 23% from its 52-week low price of $41.06/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 85 bps in annual fees (See: All MLP ETFs).

Why the Move?

The AI boom has put the master limited partnership (MLP) corner of the global energy market in the spotlight. The AI boom is driving up gas-pipeline stocks because artificial intelligence (AI) applications, particularly in data centers, require vast amounts of electricity. This, in turn, is pushing utilities to expand natural gas usage.

MLPs often provide their investors with profitable cash payments, making them an attractive option for income-oriented investors. Besides offering attractive yields and the possibility of capital appreciation, MLPs also exhibit reduced volatility in an investment portfolio.

More Gains Ahead?

Currently, AMLP has a High risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 15.32, which gives cues of a further rally.


See More Zacks Research for These Tickers


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


Alerian MLP ETF (AMLP) - free report >>

Published in