Commodity ETF (DBC) Hits New 52-Week High

For investors seeking momentum, Invesco DB Commodity Index Tracking Fund DBC is probably on the radar. The fund just hit a 52-week high and is up 43% from its 52-week low price of $15.83 per 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:

DBC in Focus

Invesco DB Commodity Index Tracking Fund invests in a rules-based index composed of futures contracts on 14 of the most heavily traded and important physical commodities in the world. It charges 87 bps in annual fees from investors (see: all the Broad Commodity ETFs here).

Why the Move?

The commodity market has been an area to watch lately, given the spike in prices. Recovering demand following COVID-19, supply chain disruptions, government policy and adverse weather have all contributed to tightening in markets, thereby pushing prices higher.

More Gains Ahead?

It seems that DBC might remain strong, given a weighted alpha of 41.90 and 20-day volatility of 9.84%. As a result, there is still some promise for risk-aggressive investors who want to ride on this surging ETF.
 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.