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MLPA - ETF AI Analysis

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MLPA

Global X MLP ETF (MLPA)

Rating:71Outperform
Price Target:
The Global X MLP ETF (MLPA) has a solid overall rating, driven by strong contributions from holdings like MPLX and Western Midstream Partners (WES). MPLX stands out with robust revenue growth, high profitability margins, and bullish technical momentum, while WES benefits from strong financial performance and strategic growth initiatives. However, weaker holdings like Genesis Energy (GEL), which faces significant financial challenges and valuation concerns, slightly weigh on the fund's overall score. A key risk factor for MLPA is its concentration in the energy sector, which could expose it to sector-specific volatility.
Positive Factors
High Dividend Potential
The ETF focuses on MLPs, which are known for generating strong income through dividends, appealing to income-focused investors.
Energy Sector Focus
The fund’s heavy exposure to the energy sector could benefit from long-term demand for energy infrastructure and services.
Reasonable Expense Ratio
The ETF charges a moderate expense ratio, making it relatively cost-effective compared to other niche funds.
Negative Factors
Weak Recent Performance
The ETF has shown negative returns across multiple timeframes, which may concern investors seeking growth.
Over-Concentration in Energy
With over 96% of assets in the energy sector, the fund is highly sensitive to fluctuations in energy market conditions.
Limited Geographic Diversification
The ETF is almost entirely focused on U.S.-based companies, offering little exposure to international markets.

MLPA vs. SPDR S&P 500 ETF (SPY)

MLPA Summary

The Global X MLP ETF (MLPA) is an investment fund that focuses on companies in the energy sector, specifically Master Limited Partnerships (MLPs). These companies are involved in transporting, storing, and processing energy commodities. The ETF tracks the Solactive MLP Infrastructure Index and includes well-known names like Energy Transfer and Enterprise Products Partners. It’s a great option for investors looking for steady income, as MLPs are known for their high yields and tax-efficient structures. However, new investors should know that this ETF is heavily tied to the energy market, meaning its performance can fluctuate with changes in energy prices and demand.
How much will it cost me?The Global X MLP ETF (MLPA) has an expense ratio of 0.45%, meaning you’ll pay $4.50 per year for every $1,000 invested. This is slightly higher than the average for passively managed ETFs because it focuses on a niche area of the energy sector, which requires specialized management. However, it may appeal to investors seeking targeted exposure to energy infrastructure and income-generating MLPs.
What would affect this ETF?The Global X MLP ETF (MLPA) could benefit from rising energy demand and infrastructure investments in the U.S., as its holdings focus on transporting and processing energy commodities. However, it may face challenges from fluctuating energy prices, regulatory changes affecting MLPs, or economic slowdowns that reduce energy consumption. Its strong focus on North American energy infrastructure makes it sensitive to regional economic and policy shifts.

MLPA Top 10 Holdings

The Global X MLP ETF is heavily concentrated in the energy sector, with names like MPLX and Enterprise Products Partners driving steady performance thanks to strong financials and attractive dividend yields. Sunoco is also rising, benefiting from strategic acquisitions and robust cash flows. However, Energy Transfer and Hess Midstream Partners are lagging, weighed down by mixed earnings and bearish technical trends. With nearly all holdings rooted in U.S. energy infrastructure, this fund offers a focused play on the sector, though its reliance on a few key players makes it sensitive to their ups and downs.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Energy Transfer12.84%$250.37M$56.86B-13.02%
70
Outperform
Enterprise Products Partners12.66%$246.86M$69.51B-0.19%
76
Outperform
MPLX12.09%$235.77M$55.79B12.26%
81
Outperform
Western Midstream Partners10.28%$200.50M$16.08B-0.88%
80
Outperform
Plains All American9.69%$188.94M$12.53B-0.56%
79
Outperform
Hess Midstream Partners8.51%$165.94M$7.23B-5.10%
72
Outperform
Sunoco8.30%$161.81M$8.23B0.82%
72
Outperform
Cheniere Energy Partners6.20%$120.98M$25.63B-8.91%
61
Neutral
Genesis Energy4.90%$95.63M$1.93B48.72%
49
Neutral
USA Compression4.89%$95.29M$2.98B6.31%
70
Outperform

MLPA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
47.68
Positive
100DMA
48.04
Positive
200DMA
48.07
Positive
Market Momentum
MACD
0.33
Positive
RSI
55.37
Neutral
STOCH
21.55
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MLPA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 48.69, equal to the 50-day MA of 47.68, and equal to the 200-day MA of 48.07, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 21.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MLPA.

MLPA Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.82B0.45%
$7.23B0.09%
$2.58B0.45%
$1.87B0.35%
$1.32B0.08%
$1.15B0.38%
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MLPA
Global X MLP ETF
48.81
3.37
7.42%
VDE
Vanguard Energy ETF
MLPX
Global X MLP & Energy Infrastructure ETF
XOP
SPDR S&P Oil & Gas Exploration & Production ETF
FENY
Fidelity MSCI Energy Index ETF
IYE
iShares U.S. Energy ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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