U.S. Markets open in 3 hrs 48 mins

Aluminum ETF (JJU) Hits New 52-Week High

Sweta Killa
Kinder Morgan (KMI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

For investors seeking momentum, iPath Bloomberg Aluminum Subindex Total Return ETN JJU is probably on radar now. The fund just hit a 52-week high and is up about 24% from its 52-week low price of $16.22/share.

But 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 on where it might be headed:

JJU in Focus

This ETN follows the Bloomberg Aluminum Subindex Total Return, which delivers returns through an unleveraged investment in the futures contracts on aluminum. The ETN has been able to manage $3 million in AUM and has 0.75% in expense ratio (see: all the Industrial Metal ETFs here).

Why the Move?

Aluminum has been a commodity to watch lately given the impressive surge in its prices this week after the United States slapped tough new sanctions on Rusal, a leading metal producer controlled by Russian oligarch Oleg Deripaska. Notably, Rusal produces 7% of the world's aluminum, according to the U.S. Treasury.

More Gains Ahead?

Currently, JJU has a Zacks ETF Rank #4 (Sell) with a High risk outlook, suggesting that the outperformance is unlikely to continue in the months ahead. However, the fund seems to remain strong given a high weighted alpha of 19.80% but with high 20-day volatility of 28.40%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
IPATH-BB ALMN (JJU): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report