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Precious Metals ETF (DBP) Hits New 52-Week High

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For investors seeking momentum, Invesco DB Precious Metals Fund (DBP - Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 29.3% from its 52-week low of $55.39 per share. 

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:

DBP in Focus

Invesco DB Precious Metals Fund is designed for investors seeking a cost-effective and convenient way to invest in commodity futures. It tracks the DBIQ Optimum Yield Precious Metals Index Excess Return Index, which is composed of futures contracts on two of the most important precious metals — gold and silver. DBP charges 76 bps in annual fees (see: all the Precious Metals ETFs here).

Why the Move

The precious metal market has been an area to watch lately, given the solid surge in both gold and silver prices. After logging its best performance since the third quarter of 1986, gold continued its blistering rally, hitting new records on safe-haven demand triggered by uncertainty surrounding U.S. President Donald Trump’s tariffs. Silver has also been on the rise, following the yellow metal. Beyond its safe-haven appeal, silver benefits from its dual nature as both a precious and an industrial metal.

More Gains Ahead?

Currently, DBP has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. It is hard to get a handle on its future returns one way or the other. However, a weighted alpha of 29.17 and a 20-day volatility of 12.4% show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.


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