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Agricultural ETF (DBA) Hits New 52-Week High
For investors seeking momentum, Invesco DB Agriculture ETF (DBA - Free Report) is probably on radar. The fund just hit a 52-week high and is up 24.7% from its 52-week low price of $20.34/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 of where it might be headed:
DBA in Focus
The underlying DBIQ Diversified Agriculture Index Excess Return Index is a rules-based index composed of futures contracts on some of the most liquid and widely traded agricultural commodities. It is intended to reflect the performance of the agricultural sector. The fund charges 93 bps in fees. The fund yields 3.84% annually.
Why the Move?
Commodities are often considered a hedge against inflation as they typically rise when inflation is accelerating and offer protection from the effects of higher prices.
More Gains Ahead?
The fund might continue its strong performance given a positive weighted alpha of 25.89.