Back to top
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
iPath Pure Beta Broad Commodity ETN (BCM) Hits a 52-Week High
For investors looking for momentum, iPath Pure Beta Broad Commodity ETN is probably a suitable pick. BCM just hit a 52-week high, up 59.2% from its 52-week low price of $34.54/share.
Let’s look at the fund and its near-term outlook to gain an insight into where it might be headed:
BCM in Focus
iPath Pure Beta Broad Commodity ETN is designed to provide exposure to the Barclays Commodity Index Pure Beta TR. BCM has an AUM of $60.9 million and charges 60 basis points in annual fees.
Why the Move?
As an asset class, commodities are observed to have a positive correlation with inflation. Moreover, by providing good diversification benefits, they are also found to be uncorrelated with the broader stock market. Also, the escalation in Russia-Ukraine tensions sparked a rally in a wide range of commodities. This is making funds like BCM an impressive investment option.
More Gains Ahead?
It seems as if the iPath Pure Beta Broad Commodity ETN will remain strong, with a positive weighted alpha of 51.0, which gives cues of a further rally.