United States Copper ETF CPER is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 57.66% from its 52-week low price of $25.65 per share.
Are more gains in store for this ETF? Let us 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
The underlying SummerHaven Copper Index Total Return reflects the performance of the investment returns from a portfolio of copper futures contracts on the COMEX exchange. The product charges 1.06% in annual fees (see: all Industrial Metals ETFs).
Why the Move?
Copper has been an area to watch lately, given the surge in the price of the metal. The metal’s price rally has been largely fueled by speculative buying, as investors extend positions on expectations of strong demand, aided by a weaker dollar and ongoing geopolitical risks.
Expectations of further Fed interest rate cuts this year have also brightened the prospects for the red metal.
More Gains Ahead?
Currently, CPER has a Zacks ETF Rank #3 (Hold) and a High risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 56.22 (as per Barchart.com), which gives cues of a further rally
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This article originally published on Zacks Investment Research (zacks.com).
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