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We have highlighted five top-performing ETFs from different sectors that were the leaders in November.
For investors seeking momentum, InfraCap MLP ETF AMZA is probably on the radar. The fund just hit a 52-week high and is up 28.6% from its 52-week low price of $34.18/share.
Oil prices have been steady, ranging from mid-$60s to near $90, while other macro conditions have been generally favorable for MLPs. The InfraCap MLP ETF has performed well in the last few years, and its valuation remains attractive with solid long-term EPS growth trends. I note key price levels to monitor in the months ahead and analyze the current portfolio.
Wall Street was upbeat in June, as the S&P 500 topped the 5,500 level for the first time. These ETFs also saw strong growth.
Energy stocks have shown strong performance in the current environment of rising interest rates, while sectors sensitive to yields have faced challenges. The InfraCap MLP ETF has done better than the S&P 500 Trust ETF, but a recent decline has slowed its progress. AMZA provides access to midstream master limited partnerships that offer high current income, using leverage and options to increase income potential.
AMZA's holdings are backed by long-lived assets that generate substantial cash flow to minimize risk. This active management team uses modest leverage and option strategies to enhance income. The regulatory environment and global demand provide the potential for multiple expansions amidst these macro tailwinds.
InfraCap MLP ETF: Steady Amidst The Storm
According to OPEC's December Oil Market Report, the demand for crude oil is expected to outpace the supply increase from non-OPEC sources.
Infrastructure Capital Advisors is targeting small-cap U.S. companies poised to deliver income and growth potential with its latest active ETF. The InfraCap Small Cap Income ETF (NYSE Arca: SCAP) will place a particular emphasis on small-cap equities considered value stocks.
InfraCap MLP ETF has a high expense ratio, but it offers higher yields compared to other ETFs, making it attractive for yield-seeking investors. AMZA is an actively managed ETF that uses leverage to potentially enhance returns, and its management team has a track record of outperforming other MLP-focused ETFs. The Fund's portfolio includes leading MLPs in the energy infrastructure sector, such as MPLX LP, Plains All American Pipeline, and Energy Transfer, which contribute to its strong performance.
FAQ
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