United States Copper ETF (CPER Quick QuoteCPER - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 44.56% from its 52-week low price of $21.88/share.

Are more gains in store for this ETF? Let us 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.

CPER in Focus

The underlying SummerHaven Copper Index Total Return reflects the performance of the investment returns from a portfolio of copper futures contracts on the COMEX exchange. The product charges 97 bps in annual fees (see: all Industrial Metals ETFs).

Why the Move?

Copper has been an area to watch lately, given the surge in the price of the metal, driven partly by a suspected short squeeze. Disruption in mining supply chains is one of the reasons for the rally in the metal’s price. Being a crucial component of the energy transition, a global push for renewable energy has resulted in growing demand for copper, fueling the rally in its prices.

More Gains Ahead?

Currently, CPER has a Zacks ETF Rank #3 (Hold) and a High risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 49.0, which gives cues of a further rally.