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Commodity ETF (USCI) Hits New 52-Week High
United States Commodity ETF (USCI - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 29.04% from its 52-week low price of $61.60 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.
USCI in Focus
The underlying SummerHaven Dynamic Commodity Index Total Return seeks to reflect the performance of a portfolio of 14 commodity futures. The product charges 116 bps in annual fees (See: All Broad Commodity ETFs).
Why the Move?
The commodity sector has been an area to watch lately, given the rise in commodity prices. Increase in safe-haven demand and estimations of further interest rate cut by the Fed are driving silver prices. Coffee prices have also spiked due to increasing supply constraints. Additionally, oil prices have increased as the Trump administration imposed further sanctions on Russian oil.
More Gains Ahead?
USCI might continue its strong performance in the near term, with a positive weighted alpha of 25.41 (per Barchart.com), which gives cues of another rally.