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 $33.93 today, and is now up 66.16% 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 66.16% from its 52-week low, which was hit back on February 11, 2016. The fund has now returned 6.79% over the past month, 12.33% over the past three months, and 8.89% in the past six months. Those returns compare quite favorably to the benchmark S&P 500 index’s 2.05%, 8.37%, and 6.62% 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, which is to be expected for a product that’s at its yearly highs.
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 MLPs surging over the past year or so amid rising energy prices, it shouldn’t be surprising that AMJ is hitting new highs. Donald Trump’s promise to get a couple of controversial pipeline projects completed is helping as well. It’s also worth nothing that AMJ has a 6.5% yield, making it it highly attractive to yield-seeking investors amid a low interest rate environment.
AMJ SMART Grade: More Gains Ahead?
A SMART Grade of A suggests very strong future price growth potential, so it’s reasonable to expect even more gains ahead. Given the rebound in the energy markets and still-low interest rates, AMJ receives our highest approval.
For more information about this ETF, including full ratings, news, data, and more, please visit AMJ’s ticker page.
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