1 / 2

Should You Invest in the InfraCap MLP ETF

https://www.infracapfunds.com/ - Designed to provide broad exposure to the Energy - MLP segment of the U.S. equity market, the InfraCap MLP ETF (AMZA) is a passively managed exchange traded fund launched on 10/14/2014.

pffrmlpetf
Download Presentation

Should You Invest in the InfraCap MLP ETF

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Should You Invest in the InfraCap MLP ETF (AMZA)? Designed to provide broad exposure to the Energy - MLP segment of the U.S. equity market, the InfraCap MLP ETF (AMZA) is a passively managed exchange traded fund launched on 10/14/2014. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors. Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - MLP is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%. For more information visit: https://www.infracapfunds.com/ Index Details The fund is sponsored by Infracap Mlp Etf. It has amassed assets over $629.85 M, making it one of the larger ETFs attempting to match the performance of the Energy - MLP segment of the U.S. equity market. This ETF is active and does not track a benchmark. Costs Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same. Annual operating expenses for this ETF are 1.36%, making it the most expensive product in the space. It has a 12-month trailing dividend yield of 24.23%. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Energy sector--about 0% of the portfolio. Industrials and Materials round out the top three. Looking at individual holdings, Andeavor Logistics Lp (ANDX) accounts for about 14.15% of total assets, followed by Mplx Lp (MPLX) and Energy Transfer Partners Lp (ETP).

  2. The top 10 holdings account for about 81.46% of total assets under management. Performance and Risk The ETF has gained about 0.47% so far this year and is down about -3.68% in the last one year (as of 06/05/2018). In that past 52-week period, it has traded between $6.71 and $10.31. The ETF has a beta of 1.75 and standard deviation of 39.24% for the trailing three-year period, making it a high risk choice in the space. With about 264 holdings, it effectively diversifies company-specific risk. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

More Related