Invesco DB Commodity Index Tracking ETF (DBC Quick QuoteDBC - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 49.14% from its 52-week low price of $19.84 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.

DBC in Focus

The underlying DBIQ Optimum Yield Diversified Commodity Index Excess Return Index is a rules-based index composed of futures contracts on 14 of the most heavily traded and important physical commodities in the world. The product charges 82 bps in annual fees (See: All Broad Commodity ETFs).

Why the Move?

The commodity sector has been an area to watch lately, as supply disruptions through the Strait of Hormuz have driven prices higher. Damage to critical energy infrastructure in the region, which is restricting near-term production capacity, along with the closure of the Strait of Hormuz, causing supply disruptions, is likely to keep oil prices higher for longer than expected.

More Gains Ahead?

DBC might continue its strong performance in the near term, with a positive weighted alpha of 49.41 (per Barchart.com), which gives cues of another rally.