Investors should steer clear of iPath Bloomberg Sugar Subindex Total Return ETN for now. The fund recently hit a new 52-week low. Shares of SGG are down roughly 35.6% from its 52-week high of $37.77/share.
But is more pain in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might be headed.
SGG in Focus
SGG focuses on providing exposure to sugar futures and tracks the Dow Jones-UBS Sugar Subindex Total Return index. SGG charges 75 basis points in fee per year and has AUM of $64.1 million (see all Agricultural ETFs here).
Why the move?
Sugar prices have been falling lately, as multiple concerns are bothering the commodity’s market. Overproduction concerns and muted demand in Brazil and India, the world’s largest and second largest sugar producers respectively, have been weighing on sugar prices. Adding to the agony, weak economic fundamentals in Brazil also remain an overhang on sugar prices.
More Losses Ahead?
SGG has a weighted alpha of -34.00. Moreover, the fund has a Zacks ETF Rank #4 (Sell) with a High risk outlook. So, the outlook for this fund remains quite bleak.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Investors should steer clear of iPath Bloomberg Sugar Subindex Total Return ETN for now. The fund recently hit a new 52-week low. Shares of SGG are down roughly 35.6% from its 52-week high of $37.77/share.
But is more pain in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might be headed.
SGG in Focus
SGG focuses on providing exposure to sugar futures and tracks the Dow Jones-UBS Sugar Subindex Total Return index. SGG charges 75 basis points in fee per year and has AUM of $64.1 million (see all Agricultural ETFs here).
Why the move?
Sugar prices have been falling lately, as multiple concerns are bothering the commodity’s market. Overproduction concerns and muted demand in Brazil and India, the world’s largest and second largest sugar producers respectively, have been weighing on sugar prices. Adding to the agony, weak economic fundamentals in Brazil also remain an overhang on sugar prices.
More Losses Ahead?
SGG has a weighted alpha of -34.00. Moreover, the fund has a Zacks ETF Rank #4 (Sell) with a High risk outlook. So, the outlook for this fund remains quite bleak.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>