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Commodity ETF (GXG) Hits New 52-Week High

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For investors seeking momentum, iShares S&P GSCI Commodity-Indexed Trust (GSG - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 30.9% from its 52-week low price of $13.16/share.

But 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 on where it might be headed.

GSG in Focus

The fund looks to track the results of a fully collateralized investment in futures contracts. The fund holds about seven securities. Energy takes about 63% of the fund followed by agriculture (15.5%) (see all Broad Commodity ETFs here).

Why the Move?

Commodities are back with a bang on favorable demand-supply dynamics and a subdued greenback. Plus, an uptick in global growth has added to the commodity’s strength. All these factors boosted the fund. Also, commodity investing is viewed as protection against inflation.

More Gains Ahead? 

It seems that GXG might stay strong in the near term given a positive weighted alpha of 17.60. As a result, there is still some promise for investors who want to ride on this surging ETF.

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