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Alerian MLP ETF Surges To New Highs Amid MLP Merger Mania
Investors looking for ETFs with rising momentum should begin to consider the JPMorgan Alerian MLP Index ETN (AMJ). This product just hit a new 52-week high of $33.94 today, and is now up 66.21% from its 52-week low price of $20.42 per share.
Will this ETF continue its string of recent wins? Let’s take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside AMJ’s Rise
As mentioned earlier, AMJ has now gained 66.21% from its 52-week low, which was hit back on February 11, 2016. The fund has now returned 5.57% over the past month, 15.53% over the past three months, and 8.25% in the past six months. Those returns compare to the benchmark S&P 500 index’s 1.93%, 9.77%, and 5.57% returns in the same periods, respectively.
AMJ currently sits above its 10-day, 20-day, 50-day, 100-day, and 200-day moving averages (MAs), which from a technical standpoint suggests a very strong possibility that the recent gains can continue. That’s because the shares have no short-term overhead resistance to bump up against.
Today’s 1% rise is no doubt fueled by another mega merger in the space. ONEOK Inc. said this morning that it would acquire the remaining portion of ONEOK Partners for $9.3 billion.
A Look Under The Hood
JPMorgan Alerian MLP Index ETN is a Equity-focused product issued by JP Morgan Chase. Its expense ratio of 0.85% makes it the #10 cheapest ETF among 22 total funds in the MLP ETFs category.
AMJ currently boasts $3.80B in assets under management (AUM), placing it #2 of 22 ETFs in its category, and #119 of 1922 total ETFs in the U.S. exchange traded universe.
The investment objective of the JPMorgan Alerian MLP Index ETN is to provide investors a way to gain exposure to midstream energy MLPs. The ETNs pay a variable quarterly coupon linked to the cash distributions paid on the MLPs in the index, less accrued tracking fees.
With the energy sector posting a massive recovery over the past year, and a lot of consolidation in the industry pushing MLP valuations higher, it’s not unexpected to see this fund hitting new highs today.
AMJ SMART Grade: More Gains Ahead?
AMJ currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #2 of 22 funds in the MLP ETFs category.
A SMART Grade of A suggests excellent future price growth potential, so it’s more than reasonable to expect even more gains ahead.
For more information about this ETF, including full ratings, news, data, and more, please visit AMJ’s ticker page.
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