For investors looking for momentum, United States Copper Index Fund CPER is probably a suitable pick. The fund just hit a 52-week high and is up 89.1% from its 52-week low price of $14.50/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
CPER in Focus
The fund’s investment objective is for the daily changes in percentage terms of its shares’ per share net asset value to reflect the daily changes in percentage terms of the SummerHaven Copper Index Total Return, less CPER’s expenses. It has AUM of $226.60 million and charges 76 basis points (bps) in annual fees.
Why the Move?
Copper has recently risen to its highest level in about a decade on growing demand as global manufacturing levels are recovering. Moreover, it is expected that post the ongoing health crisis, demand will outstrip near-term supply. This is especially true as supply tightens and demand outlook brightens. The constrained supply conditions are expected to remain, given that environmental policies are driving the use of copper along with increasing investments in renewable energy and electronic vehicles, which will need large volumes of the raw material. This is making funds like CPER an attractive investment option.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 87.93, which gives cues of further rally.
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US-COPPER IF (CPER): ETF Research Reports
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