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Coffee ETN (JO) Hits New 52-Week High
For investors seeking momentum, iPath Bloomberg Coffee SubTR ETN is probably on radar now. The note just hit a 52-week high, which is up roughly 43.7% from its 52-week low price of $17.00/share.
But are more gains in store for this ETN? Let’s take a quick look at the note and the near-term outlook on it to get a better idea on where it might be headed:
JO in Focus
JO looks to provide exposure to the Bloomberg Coffee Subindex Total Return Index. JO charges investors 75 basis points a year in fees (see all agricultural ETFs here).
Why the Move?
The inclement weather in Brazil – one of the key coffee producing regions – boosted coffee prices in recent times. Also, supply shortages are cited in Indonesia for the robusta variety. All in all, worries related to a global coffee shortfall led to the uptick in prices and the ETN.
Gains Ahead?
Currently, JO has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook. Also, the product has a positive weighted alpha of 32.50. A positive weighted alpha hints at more gains.
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