For investors seeking momentum, Invesco DB Commodity Index Tracking ETF DBC is probably on the radar. The fund just hit a 52-week high and has risen 53.7% from its 52-week low price of $21.98/share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might head:
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.
Why the Move?
The fund is rising as persistent geopolitical tensions and supply-chain disruptions support energy prices, while inflation concerns and demand for commodities used in AI infrastructure add to the bullish outlook.
DBC, which tracks a diversified basket of commodity futures, can benefit from rising prices across energy, industrial metals and other commodities.
More Gains Ahead?
DBC might continue its strong performance in the near term, with a positive weighted alpha of 53.00 (as per Barchart.com), which gives cues of a further rally.
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Invesco DB Commodity Index Tracking ETF (DBC): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).