Stocks have surged since mid-August 2024, with the S&P 500 up over 12%, driven by Financials, Information Technology, and Consumer Discretionary sectors. I reiterate a buy rating on the InfraCap MLP ETF due to its compelling valuation and strong 29% total return since August 2024. AMZA offers high current income with a 6-7% yield, modest leverage, and a focus on midstream MLPs, despite some liquidity concerns.
InfraCap MLP ETF's long-term performance is poor, with a -81% share price drop since inception and a -19% total return despite dividend reinvestment. The fund's distribution history is concerning, with payouts dropping from $20.30 per share in 2015 to $3.32 currently, a 95% decline after inflation. MLP funds generally perform poorly long term due to cyclical industry challenges and high distribution rates, leaving little room for growth during downturns.
We have highlighted five top-performing ETFs from different sectors that were the leaders in November.
For investors seeking momentum, InfraCap MLP ETF AMZA is probably on the radar. The fund just hit a 52-week high and is up 28.6% from its 52-week low price of $34.18/share.
Oil prices have been steady, ranging from mid-$60s to near $90, while other macro conditions have been generally favorable for MLPs. The InfraCap MLP ETF has performed well in the last few years, and its valuation remains attractive with solid long-term EPS growth trends. I note key price levels to monitor in the months ahead and analyze the current portfolio.
Wall Street was upbeat in June, as the S&P 500 topped the 5,500 level for the first time. These ETFs also saw strong growth.