In This Article:
United States Commodity ETF USCI is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 20.42% from its 52-week low price of $55.63 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.
USCI in Focus
The underlying SummerHaven Dynamic Commodity Index Total Return seeks to reflect the performance of a portfolio of 14 commodity futures. The product charges 111 bps in annual fees (See: All Broad Commodity ETFs).
Why the Move?
The commodity sector has been an area to watch lately, given the rise in commodity prices.Cocoa and coffee prices surged significantly in 2024 driven by unfavorable weather conditions and persisting supply concerns. Additionally, the rise in natural gas prices was fueled by predictions of colder weather and forecasts of increasing demand in early 2025.
More Gains Ahead?
USCI might continue its strong performance in the near term, with a positive weighted alpha of 17.47 (per Barchart.com), which gives cues of another rally.
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United States Commodity ETF (USCI): ETF Research Reports