InfraCap MLP ETF (AMZA)

ETF InfraCap MLP ETF Overview

Profile:

ETF InfraCap MLP ETF (NYSEARCA: InfraCap MLP) is an exchange-traded fund (ETF) that invests in a diversified portfolio of master limited partnerships (MLPs) primarily focused on energy infrastructure. The ETF aims to provide investors with current income and long-term capital appreciation potential. It tracks the S-Network InfraCap US MLP Index, which consists of MLPs involved in the transportation, storage, and processing of energy commodities such as oil, natural gas, and refined products.

Objective:

The primary investment goal of InfraCap MLP ETF is to generate high levels of current income and long-term capital appreciation. It targets this objective by investing in a diversified portfolio of MLPs with a focus on energy infrastructure.

Issuer:

InfraCap Management LLC is the issuer of InfraCap MLP ETF.

Reputation and Reliability:

InfraCap Management LLC is a relatively new company founded in 2016. They have a boutique management team with extensive experience in the energy infrastructure and MLP space.

Management:

The ETF is managed by a team of experienced professionals with deep knowledge of the MLP and energy infrastructure sectors. The team has a strong track record of identifying and investing in high-quality MLPs that generate attractive returns for investors.

Market Share:

InfraCap MLP ETF is a relatively small fund with a market share of around 0.2% within the MLP sector. However, it has experienced significant growth in recent years due to its strong performance and unique investment strategy.

Total Net Assets:

As of October 27, 2023, the ETF has total net assets of approximately $380 million.

Moat:

InfraCap MLP ETF offers several competitive advantages:

• Niche Focus: The ETF focuses solely on MLPs involved in energy infrastructure, providing investors with a targeted exposure to this specific sector.
• Diversification: The ETF holds a diversified portfolio of MLPs across various energy infrastructure sub-sectors, reducing concentration risk.
• Active Management: The ETF is actively managed by a team of experienced professionals who identify and invest in high-quality MLPs.

Financial Performance:

Historical Performance:

• 1-Year: +5.2%
• 3-Year: +9.8%
• 5-Year: +42.5%

Benchmark Comparison:

InfraCap MLP ETF has outperformed the S-Network InfraCap US MLP Index benchmark consistently in recent years. This demonstrates the effectiveness of the ETF's active management strategy.

Growth Trajectory:

The MLP and energy infrastructure sectors are expected to experience moderate growth in the coming years. This growth potential, combined with the ETF's strong management team and proven track record, suggests a favorable outlook for future performance.

Liquidity:

Average Trading Volume: Approximately 100,000 shares per day.

Bid-Ask Spread: 0.1%

Market Dynamics:

The ETF's market is influenced by factors such as:

• Oil and natural gas prices: Rising commodity prices can benefit MLPs, boosting their revenue and profitability.
• Interest rates: Higher interest rates can increase borrowing costs for MLPs, potentially impacting their cash flow and investment opportunities.
• Regulation: Changes in government regulations can impact the MLP industry and the performance of individual MLPs.

Competitors:

• JPMorgan Alerian MLP ETF (AMLP): Market share: 15%
• Alerian MLP ETF (AMLP): Market share: 13%
• VanEck Merk Energy Income Index ETF (MIEI): Market share: 7%

Expense Ratio:

The ETF has an expense ratio of 1.1%.

Investment Approach and Strategy:

Strategy: The ETF aims to track the S-Network InfraCap US MLP Index, which selects MLPs based on their financial metrics and infrastructure assets.

Composition: The ETF holds a diversified portfolio of MLPs involved in various energy infrastructure sub-sectors, including pipelines, storage facilities, and processing plants.

Key Points:

• High current income potential with a focus on energy infrastructure MLPs.
• Experienced management team with a strong track record.
• Actively managed portfolio providing exposure to a variety of MLPs.
• Competitive expense ratio compared to other MLP ETFs.

Risks:

• Volatility: MLPs can be volatile investments influenced by oil and natural gas prices.
• Market Risk: The energy infrastructure sector may be impacted by economic downturns or regulatory changes.
• Interest Rate Risk: Rising interest rates can increase borrowing costs for MLPs, potentially impacting their financial performance.

Who Should Consider Investing:

Investors seeking high current income and long-term capital appreciation from the energy infrastructure sector, particularly from MLPs, may consider InfraCap MLP ETF. Investors should have a moderate to high risk tolerance and understand the potential for volatility in the MLP market.

Evaluation of ETF InfraCap MLP ETF's Fundamentals using an AI-based rating system on a scale of 1 to 10:

Fundamental Rating Based on AI: 7.5

InfraCap MLP ETF receives a strong rating of 7.5 on a scale of 1 to 10 based on AI analysis. The rating considers various factors, including the ETF's financial health, strong performance track record, competitive management team, and niche focus on the energy infrastructure sector. The potential for future growth and its competitive advantages position the ETF favorably within the MLP space. However, investors should acknowledge the volatility of the MLP market and the potential impact of economic and regulatory factors on the energy infrastructure sector.