Yahoo Finance Cocoa ETF (NIB) Hits New 52-Week High
For investors seeking momentum, iPath Bloomberg Cocoa Subindex Total Return ETN NIB is probably on radar. The fund just hit a 52-week high and is up 42.5% from its 52-week low price of $23.02/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 of where it might be headed:
NIB in Focus
The underlying Bloomberg Cocoa Subindex Total Return reflects the returns that are potentially available through an unleveraged investment in the futures contracts on cocoa. The product charges 70 bps in annual fees.
Why the Move?
Cocoa futures surged past $2,900 a tonne, marking the highest since November 2020 due to supply crunch in top producer Ivory Coast and expectations of a global supply deficit. In addition, the International Cocoa Organization (ICCO) said last month that global 2022/23 cocoa hoard would drop 3.5% to 1.653 MMT due to weather concerns, especially in West Africa, per tradingeconomics.
More Gains Ahead?
Currently, NIB has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance given a positive weighted alpha of 24.30.
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iPath Bloomberg Cocoa Subindex Total Return ETN (NIB): ETF Research Reports
