MLP ETF (MLPA) Hits New 52-Week High

For investors seeking momentum, Global X MLP ETF MLPA is probably on radar. The fund just hit a 52-week high and is up 35.6% from its 52-week low price of $32.29/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:

MLPA in Focus

Global X MLP ETF offers exposure to some of the largest, most-liquid midstream master limited partnerships (MLPs). It invests in midstream pipelines and storage facilities that have less sensitivity to energy prices. The product charges 45 bps in annual fees (see: all the MLP ETFs here).

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. 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. 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, MLPA might remain strong given a weighted alpha of 21.60 and 20-day volatility of 17.49%. As a result, there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.