Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF PDBC is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 50.52% from its 52-week low price of $12.47 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.
PDBC in Focus
The fund employs an active strategy and seeks to achieve its investment objective by investing in commodity-linked futures and other financial instruments that provide economic exposure to a diverse group of the most heavily traded commodities. The product charges 59 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, along with the continued closure of the Strait of Hormuz and an elusive ceasefire deal, is likely to keep oil prices higher for longer than expected.
More Gains Ahead?
PDBC might continue its strong performance in the near term, with a positive weighted alpha of 56.37 (per Barchart.com), which gives cues of another rally.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
