We have never spoken about AMZA (InfraCap Active MLP ETF, Expense Ratio 1.05%) which debuted less than a year ago in early October 2014.
The fund is rather small with only $8.6 million in AUM but it trades a decent amount of shares, at least lately in comparison to its typical ADV of about 4,000 shares. From the issuer known as Infrastructure Capital Advisors, AMZA is according to ETFdb.com “an investment advisor that manages hedge funds and an ETF that focus on the energy world.”
This was the first launch to market by Infrastructure Capital Advisors and as its fund name suggests falls within the greater “MLP” category which currently contains twenty ETFs at the moment. How does AMZA attempt to make its market in a growing segment?
According to fund literature “InfraCap Active MLP seeks total return primarily through investments in equity securities of publicly-traded master limited partnerships and limited liability companies taxed as partnerships (MLP’s).” From a fund exposure standpoint, we see some of the following equity securities, WPZ (16%), PAA (12.5%), MWE (10.1%), EPD (9.29%), and MMP (7.92%) among the top five positions, and the fund holds thirty six individual MLPs at the moment.
MLPs of course operate in the “Oil & Gas Pipelines & Distribution” segment, and we further see reasonably heavy large and mid-cap exposure, coming it at >44% and>40% respectively, and we see 7.8% exposure to Small Cap stocks.
There is actually token exposure according to fund literature to the “Oil Refining & Marketing” segment within the greater MLP category, but the lion’s share of the fund’s positions is throughout the Oil & Gas Pipelines segment.
Now, to answer the question that most MLP investors are always asking, particularly in the case of an actively managed product like we have here, the Annual/SEC Yields per fund literature are 11.59% and 5.18%. We also see that fund turnover is “64 days” which is always helpful information to have when evaluating actively managed ETFs given their general “newness” to market.
InfraCap Active MLP ETF
For more information on Street One ETF market commentary and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com
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