Commodity Strategy ETF (DCMT) Hits Fresh 52-Week High
For investors seeking momentum, DoubleLine Commodity Strategy ETF DCMT is probably on the radar now. The fund just hit a 52-week high and is up 38.6% from its 52-week low price of $23.79 per share.
But, are more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
DCMT in Focus
It is an active fund that seeks to generate total return over full market cycles through long exposures to commodity-related investments. The product charges 66 basis points (bps) in annual fees (See: All Broad Commodity ETFs here).
What Led to the Rise?
Since DCMT provides broad exposure to commodities with a significant tilt toward energy, the sharp surge in energy prices following the late-February escalation of the Middle East conflict likely propelled the fund to a new 52-week high. Meanwhile, volatility stemming from the ongoing war increased demand for safe-haven assets like Gold (another component of DCMT’s portfolio), which likely provided an additional boost to the fund’s performance.
More Gains Ahead?
DCMT may continue its strong performance in the near term, with a positive weighted alpha of 34.33 (as per Barchart.com), which suggests a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
