For investors seeking momentum, Harbor Commodity All-Weather Strategy ETF HGER is probably on the radar now. The fund just hit a 52-week high and has jumped 47.6% from its 52-week low price of $24.44 per share.
But are there more gains in store for this ETF? Let us take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
HGER in Focus
The fund offers broad-based exposure to a diverse basket of commodities. The fund charges 68 basis points (bps) in annual fees (See: all Broad Commodity ETFs here).
What Led to the Rise?
HGER's recent 52-week peak reflects a combination of broad commodity price momentum, its proprietary quantitative index methodology, and steady collateral yields. A resurgent rally across energy, metals, and agricultural markets drove underlying momentum, while the fund's dynamic index optimized futures roll yields, minimizing contango drag and overweighting assets with strong inflation pass-through. Recent elevated yields on short-term U.S. Treasury bill collateral must have added a steady income buffer, helping lift the fund to a new 52-week high.
More Gains Ahead?
HGER may continue its strong performance in the near term, with a positive weighted alpha of 46.34 (per Barchart.com), which suggests a rally.
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This article originally published on Zacks Investment Research (zacks.com).