Exchange-Traded Funds (ETFs) have transformed the landscape of investing, offering a diversified and convenient way to gain exposure to various sectors and asset classes. In this article, we will delve into a comprehensive comparison between two prominent ETFs: AMLP (Alerian MLP ETF) and ERY (Direxion Daily Energy Bear 2X Shares). We'll explore key aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.
AMLP and ERY are two ETFs that cater to different investment objectives within the energy sector. While AMLP focuses on Master Limited Partnerships (MLPs) associated with the energy industry, ERY provides inverse exposure to energy stocks. These distinct investment strategies translate into varying risks and potential returns, a topic we'll delve into in the upcoming sections.
The AMLP ETF primarily invests in MLPs engaged in energy infrastructure, such as pipelines and storage facilities. Its top holdings include well-known names like Enterprise Products Partners, Energy Transfer LP, and Magellan Midstream Partners. On the other hand, ERY seeks to offer inverse exposure to the energy sector by tracking an index of energy companies. By understanding the sectors and top holdings, investors can make informed decisions aligned with their investment goals and risk tolerance.
AMLP overlap AMLP VS ERY
AMLP boasts a substantial asset under management (AUM), reflecting its appeal to investors seeking exposure to the energy infrastructure space. The ETF's investment strategy revolves around providing income through the distributions generated by the underlying MLPs. ERY, as a leveraged inverse ETF, is designed for traders looking to profit from declines in the energy sector. Differences in capitalization and investment strategy underscore the unique potential for returns and risk in each ETF.
AMLP's objective is to provide investors with exposure to the performance of MLPs in the energy industry, which are known for their income-generating potential. ERY, however, is structured to provide inverse exposure to the energy sector on a daily basis. It achieves this by using financial derivatives and leveraged strategies. Understanding the nuances of tracking methods and exposure is crucial for selecting the ETF that aligns with an investor's preferences and risk appetite.
AMLP and ERY stand as distinct ETFs, each catering to specific investment strategies within the energy sector. Investors seeking deeper insights into holdings, correlations, overlaps, and other critical details can turn to ETF Insider, an invaluable tool that offers a user-friendly app. Through this platform, investors can access comprehensive information about various financial instruments, aiding in their decision-making process.
Disclaimer: This article is provided for informational purposes only and does not constitute investment advisory services.
Sources:
https://finance.yahoo.com/ AMLP ETF issuer
https://finance.yahoo.com/quote/AMLP/ AMLP ETF official page
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AMLP may be considered better than ERY for some investors due to its specific focus, offering diversification.
ERY's performance relative to AMLP will vary over time, depending on market conditions.
The choice between AMLP and ERY should align with your investment goals, risk tolerance, and desired exposure.
Both AMLP and ERY can be suitable investments depending on individual investment strategies, goals, and risk profiles.
The correlation between AMLP and ERY can vary over time, reflecting differences in performance.