Commodity ETF (USCI) Hits New 52-Week High
United States Commodity ETF USCI is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 50.08% from its 52-week low price of $64.26 per share.
Are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
USCI in Focus
The underlying SummerHaven Dynamic Commodity Index Total Return seeks to reflect the performance of a portfolio of 14 commodity futures. The product charges 116 bps in annual fees (See: All Broad Commodity ETFs).
Why the Move?
The commodity sector has been an area to watch lately, as supply disruptions through the Strait of Hormuz have driven prices higher. Damage to critical energy infrastructure in the region, which is restricting near-term production capacity, along with the closure of the Strait of Hormuz, causing supply disruptions, is likely to keep oil prices higher for longer than expected.
Prolonged tensions in the Middle East could keep oil markets structurally tight, with long-term oil prices remaining elevated well beyond the resolution of the conflict.
More Gains Ahead?
USCI might continue its strong performance in the near term, with a positive weighted alpha of 45.18 (per Barchart.com), which gives cues of another rally.
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United States Commodity ETF (USCI): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
