• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 18 mins China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 7 hours What's the Endgame Here?
  • 1 hour Indonesia Stands Up to China. Will Japan Help?
  • 1 day Gravity is a scam!
  • 21 hours 10 Rockets hit US Air Base in Iraq
  • 13 hours US Shale: Technology
  • 16 hours Canada / Iran
  • 1 day Wind Turbine Blades Not Recyclable
  • 17 hours Remember: Only the Poor Can Reach the Kingdom of God
  • 22 hours IRAQ / USA
  • 1 day Tales From The Smoke Shack and beyond.
  • 1 day History’s Largest Mining Operation Is About to Begin
Alt Text

Two Reasons Why Oil Prices Rose Today

Oil prices were trading slightly…

Alt Text

How Vulnerable Is Iraqi Oil Production?

Iraq has effectively doubled its…

Editorial Dept

Editorial Dept

More Info

Premium Content

An Outperformer In Energy Infrastructure

Those that seek income from their portfolios usually face a dilemma. They are by definition normally at the point where they are looking to protect their capital, so are risk-averse, but the interest and other payments that make up securities income are essentially a reward for risk. The trick is in balancing that risk and reward and that can be done in one of two ways.

The first is to moderate both sides by investing entirely in middle income producing, moderately risky instruments. The second is to average within your holdings, owning some high-yielding but risky things, and some with lower yield but a greater degree of safety. Those that take the second approach may want to consider the InfraCap MLP ETF (AMZA) as an element of the risky but high-yielding part of their portfolio.

AMZA is a unique animal. It is an actively managed ETF that employs some leverage. Both of those things increase costs, resulting in an expense ratio of 2.4%. That would be high for a traditional mutual fund, but for an ETF it is even more so. As if that isn’t enough to put you off, the one-year chart looks like this…

Before you conclude that I have lost my mind though, consider this. That chart shows a 13.2% 1-year loss, but during that time distributions have totaled over 15% and AMZA has outperformed its peers throughout its existence. Over the last three months, for example, the fund has returned 23.6% versus a category average of -1.4%.

Still,…




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News