For investors looking for momentum, iPath Pure Beta Broad Commodity ETN BCM is probably a suitable pick. BCM just hit a 52-week high, up 59.2% from its 52-week low price of $34.54/share.
Let’s look at the fund and its near-term outlook to gain an insight into where it might be headed:
BCM in Focus
iPath Pure Beta Broad Commodity ETN is designed to provide exposure to the Barclays Commodity Index Pure Beta TR. BCM has an AUM of $60.9 million and charges 60 basis points in annual fees.
Why the Move?
As an asset class, commodities are observed to have a positive correlation with inflation. Moreover, by providing good diversification benefits, they are also found to be uncorrelated with the broader stock market. Also, the escalation in Russia-Ukraine tensions sparked a rally in a wide range of commodities. This is making funds like BCM an impressive investment option.
More Gains Ahead?
It seems as if the iPath Pure Beta Broad Commodity ETN will remain strong, with a positive weighted alpha of 51.0, which gives cues of a further rally.
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