U.S. Markets close in 2 hrs 35 mins
  • S&P 500

    3,802.84
    -18.71 (-0.49%)
     
  • Dow 30

    30,920.93
    -26.06 (-0.08%)
     
  • Nasdaq

    11,112.63
    -68.91 (-0.62%)
     
  • Russell 2000

    1,711.99
    -26.85 (-1.54%)
     
  • Crude Oil

    111.24
    -0.52 (-0.47%)
     
  • Gold

    1,817.80
    -3.40 (-0.19%)
     
  • Silver

    20.75
    -0.13 (-0.61%)
     
  • EUR/USD

    1.0452
    -0.0074 (-0.7002%)
     
  • 10-Yr Bond

    3.1120
    -0.0940 (-2.93%)
     
  • Vix

    28.82
    +0.46 (+1.62%)
     
  • GBP/USD

    1.2129
    -0.0055 (-0.4512%)
     
  • USD/JPY

    136.4800
    +0.3520 (+0.2586%)
     
  • BTC-USD

    19,967.36
    -655.58 (-3.18%)
     
  • CMC Crypto 200

    429.59
    -10.07 (-2.29%)
     
  • FTSE 100

    7,312.32
    -11.09 (-0.15%)
     
  • Nikkei 225

    26,804.60
    -244.87 (-0.91%)
     

AMLP Saw Nearly $100 Million in May Inflows

·1 min read

This article was originally published on ETFTrends.com.

Midstream has continued to rally this year on strong demand and high energy prices

The enthusiasm for midstream investments has yet to subside, and with bountiful growth opportunities ahead, the momentum is likely to continue. The Alerian MLP ETF (AMLP) took in $97 million in net inflows in May, bringing the year-to-date tally up to $651 million in inflows. The fund has $6.9 billion in assets under management.

AMLP is up nearly 34% year to date on a total-return basis, according to Y-Charts, and still has room to run. Energy has rallied significantly since the end of 2020, but that performance is off a low base, given years of weakness even before the pandemic roiled energy markets, according to Stacey Morris, CFA, head of energy research at VettaFi. 

Assuming current macro trends continue (inflation, rising interest rates, a preference for value over growth) these should all continue to bode well for energy stocks, including midstream, Morris said.

In mid-May 2019, the Alerian MLP Infrastructure Index (AMZI), which is tracked by AMLP, was trading at 9.9x on a forward EV/EBITDA basis, compared to a forward EV/EBITDA multiple of 8.9x at the end of April 2022, according to Morris.

For investors worried if they’re too late, the current valuations and outlook for the space suggest now is still an ideal buying opportunity. 

For more news, information, and strategy, visit the Energy Infrastructure Channel.

vettafi.com is owned by VettaFi, which also owns the index provider for AMLP. VettaFi is not the sponsor of AMLP, but VettaFi’s affiliate receives an index licensing fee from the ETF sponsor.

POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM

READ MORE AT ETFTRENDS.COM >