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Coffee ETF (JO) Hits New 52-Week High

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Investors seeking momentum may have iPath Series B Bloomberg Coffee Subindex Total Return ETN (JO - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of JO are up approximately 46.7% from their 52-week low of $29.20/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

JO in Focus

The underlying Bloomberg Coffee Subindex Total Return reflects the returns that are potentially available through an unleveraged investment in the futures contracts on coffee. The expense ratio is 0.45%.

Why the move?

Coffee prices have been rising due to the inclement weather. While a Brazilian drought have impacted crop yields adversely, storms in Nicaraugua and Honduras have hurt infrastructure, discouraging supplies to the United States. A shipping crisis and higher freight rates in Asia has also boosted costs of commodities, including coffee, per a source.

More Gains Ahead?

The fund has a positive weighted alpha of 30.40. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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