For investors seeking momentum, Teucrium Soybean Fund SOYB is probably on radar. The fund just hit a 52-week high and is up 80% from its 52-week low price of $13.44 per 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:
SOYB in Focus
This product provides investors an easy way to gain exposure to the price of soybean futures in a brokerage account. It uses three futures contracts for soybeans, all of which are traded on the CBOT Futures Exchange. The three contracts include the second-to-expire contract weighted 35%, the third-to-expire contract weighted 30%, and 35% weighted contract expiring in the December following the expiration month of the third-to-expire contract. It charges a fee of 2.50% per year (see: all the Agricultural ETFs here).
Why the Move?
Soybean as a commodity has been an area to watch lately given its soaring prices. The soybean futures topped $16 per bushel for the first time since 2012 on supply crunch concerns. Surging demand in China and bad weather in key global-growing areas have sparked fears of grain shortages.
More Gains Ahead?
Currently, SOYB has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook, suggesting that the fund might not continue its outperformance in the months ahead. However, a high weighted alpha of 83.22% and a low 20-day volatility of 14.92% shows that there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.
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TEUCRM-SOYBEAN (SOYB): ETF Research Reports
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