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Cocoa ETF (NIB) Hits New 52-Week High

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For investors seeking momentum, iPath Bloomberg Cocoa Subindex Total Return ETN (NIB - Free Report) is probably on radar. The fund just hit a 52-week high and is up 36.4% from its 52-week low price of $23.02/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:

NIB in Focus

The underlying Bloomberg Cocoa Subindex Total Return reflects the returns that are potentially available through an unleveraged investment in the futures contracts on cocoa. The product charges 70 bps in annual fees.

Why the Move?

Cocoa futures surged past $2,840 a tonne, marking the highest since December 2020 due to supply crunch in top producer Ivory Coast. The latest data revealed that cocoa arrivals at ports in Ivory Coast since the start of the season on October 1 reached 1.727 million tonnes by March 19, down 5.4% from the same period last season, per tradingeconomics.

More Gains Ahead?

Currently, NIB has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance given a positive weighted alpha of 17.20.

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