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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 15.7% from its 52-week low price of $19.25/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 91 bps in fees.
Why the Move?
Grain prices rose after Russian pullout of Black Sea deal as the issued triggered food crisis fears. Plus, receding global growth worries (which indicates higher demand for agricultural commodities), a softer greenback and inclement weather in some regions boosted soft commodities’ prices.
More Gains Ahead?
The fund might continue its strong performance given a positive weighted alpha of 15.13.