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For investors seeking momentum, United States Copper Index Fund CPER is probably on the radar. The fund just hit a 52-week high and moved up 29% from its 52-week low of $31.74 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:
CPER in Focus
United States Copper Index Fund seeks to track the performance of the SummerHaven Copper Index Total Return. The index is designed to reflect the performance of investment returns from a portfolio of copper futures contracts on the COMEX exchange. United States Copper Index Fund charges 104 bps in annual fees (see: all the Industrial Metals ETFs here).
Why the Move
Copper metal miners of the broader stock market have been an area to watch lately, given the surge in the metal’s price. Expectations of increased demand, stimulus measures in China and supply-chain disruptions have driven the copper price higher.
More Gains Ahead?
Currently, CPER has a Zacks ETF Rank #3 (Hold). It is hard to get a handle on its future returns one way or the other. However, a weighted alpha of 30.64 and a 20-day volatility of 25.5% show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.
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This article originally published on Zacks Investment Research (zacks.com).