Investors seeking momentum may have United States Copper Index Fund (CPER - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of CPER are up approximately 51.5% from the 52-week low of $13.7/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
CPER in Focus
CPER focuses on providing exposure to a basket of copper futures contracts. It charges 80 basis points in fee per year and is fully collateralized with three-month U.S. Treasury Bills (see all Industrial Metal ETFs here).
It has AUM of $8.3 million and trades in average volumes of around 6,300 shares.
Why the Move?
Lately, the Chinese economy has been in the spotlight. Copper prices climbed to a three-year high amid renewed optimism for the Chinese economy as the congress goes into a crucial policy setting meeting. Moreover, China's producer prices rose 6.9% in September on a year-over-year basis, per the statistics bureau. This was faster than a 6.3% increase in August and above the 6.4% forecast by economists. Hence, stronger Chinese economic data has been driving prices for the metal.
More Gains Ahead?
Currently, CPER has a Zacks ETF Rank #3 (Hold) with a High Risk outlook. However, the ETF has a weighted alpha of 49.1. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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