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Commodity ETF (USCI) Hits New 52-Week High
For investors seeking momentum, United States Commodity Index Fund (USCI - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 40.5% from its 52-week low price of $33.90/share.
But 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 on where it might be headed:
USCI in Focus
United States Commodity Index Fund’s investment objective is for the daily changes in percentage terms of its shares’ net asset value (“NAV”) to reflect the daily changes in percentage terms of the SummerHaven Dynamic Commodity Index Total Return. The index is designed to reflect the performance of a portfolio of 14 commodity futures from 27 possible futures contracts. The product charges 1.10% in annual fees (see: all the Broad Commodity ETFs here).
Why the Move?
The commodity market has been an area to watch lately, given the spike in the prices. Recovering demand following COVID-19, supply chain disruptions, government policy and adverse weather have all contributed to tightening in markets, thereby pushing the prices higher.
More Gains Ahead?
It seems that USCI might remain strong given a weighted alpha of 38.73 and 20-day volatility of 12.8%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.