InfraCap MLP ETF (AMZA)

Overview

The InfraCap MLP ETF (AMZA) is an actively managed ETF focusing on master limited partnerships (MLPs) in the energy infrastructure sector. It aims for high current income and capital appreciation by investing in MLPs and related securities.

Reputation and Reliability

Active Alts is a relatively smaller player in the ETF market compared to larger issuers. Their reputation is tied to the performance of their actively managed funds.

Management Expertise

The management team has experience in energy infrastructure and active investment strategies, focusing on income generation and risk management in the MLP sector.

Goal

The primary investment goal is to provide high current income, with a secondary objective of capital appreciation.

Investment Approach and Strategy

Strategy: The fund does not track a specific index. It employs an active management strategy to select MLPs and related securities believed to offer attractive income and growth potential.

Composition The ETF primarily holds equity securities of MLPs involved in the transportation, storage, and processing of energy commodities like natural gas and crude oil.

Market Share: The InfraCap MLP ETF's market share is relatively small compared to larger, passively managed MLP ETFs.

Total Net Assets (AUM): 75420000

Key Competitors

• ALPS Alerian MLP ETF (AMLP)
• Global X MLP ETF (MLPA)
• First Trust North American Energy Infrastructure Fund (EMLP)

Competitive Landscape

The competitive landscape is dominated by larger, passively managed MLP ETFs like AMLP and MLPA, which offer lower expense ratios. AMZA's active management aims to outperform these ETFs but comes with higher fees and increased risk. AMZAu2019s advantage is the potential for active management to generate higher income and manage risk more effectively than passive funds. A disadvantage is the higher expense ratio and potential for underperformance relative to its benchmark.

Historical Performance: Historical performance has been volatile and sensitive to energy sector trends and MLP performance. Past performance is not indicative of future results.

Benchmark Comparison: Performance should be compared to an appropriate MLP index, but due to its active management, it may deviate significantly. Active management may cause fluctuations in returns.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume is moderate and may not be ideal for very large institutional investors.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions and trading volume, impacting the cost of trading.

Market Environment Factors

The ETF is influenced by factors such as energy prices, interest rates, regulatory changes affecting the energy sector, and the overall health of the economy.

Growth Trajectory

The growth trajectory depends on the performance of the underlying MLPs, the effectiveness of the active management strategy, and overall investor sentiment towards the energy sector. Any changes to strategy would be driven by prevailing market conditions and manager views.

Competitive Edge

InfraCap MLP ETF differentiates itself through its active management approach, seeking to outperform passive MLP ETFs by identifying undervalued MLPs and employing hedging strategies. It aims to generate high current income through a focused portfolio and strategic portfolio adjustments. The active management allows for flexibility to adapt to changing market conditions and reduce risk compared to passive index tracking funds. The strategy is dependent on the manager's skill and market timing abilities.

Volatility

The ETF can exhibit high volatility due to its concentration in the energy sector and exposure to MLPs, which are sensitive to commodity price fluctuations.

Market Risk

Specific risks include interest rate risk, commodity price risk, regulatory risk affecting the energy industry, and risks associated with the financial health of the underlying MLPs.

Ideal Investor Profile

The ETF is suitable for investors seeking high current income and willing to accept the risks associated with the energy sector and actively managed funds.

Market Risk

The ETF is suitable for investors with a higher risk tolerance and a longer-term investment horizon, and not for passive index followers. Ideal for those looking for income generation.

InfraCap MLP ETF (AMZA) is an actively managed ETF focused on providing high current income by investing in master limited partnerships (MLPs). It offers potential outperformance through active management, but comes with a higher expense ratio and increased volatility compared to passive MLP ETFs. Its performance is heavily dependent on the energy sector and the manager's ability to select and manage investments effectively. Investors should be aware of the risks associated with MLPs and the energy sector before investing. The ETF may be suitable for income-seeking investors with a high-risk tolerance and a long-term investment horizon.

Data Sources:

• ETF.com
• Morningstar.com
• Official ETF Fact Sheet
• Company Filings

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with a qualified financial advisor and conducting thorough due diligence. Past performance is not indicative of future results.