For investors seeking momentum, Sprott Gold Miners ETF (NYSE:GDX) (SGDM) is probably on radar now. The fund just hit a 52-week high, and is up 39.7% from its 52-week low price of $14.69 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:
SGDM in Focus
This fund provides exposure to the performance of gold and silver mining companies whose stocks are traded on major U.S. exchanges. It charges investors 57 basis points a year in fees (see: all Materials ETFs here).
Why the Move?
Gold is hovering around a 14-month high and is gaining for the fourth straight week — the longest run since January. Hopes of a Fed rate cut and still-alive, risk-off trade sentiment amid yet-unresolved U.S.-China trade tensions are the drivers. Acting as a leveraged play on the underlying metal prices, metal miners are sure to gain from this trend.
More Gains Ahead?
The fund has a positive weighted alpha of 13.90, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
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Sprott Gold Miners ETF (SGDM): ETF Research Reports
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Zacks Investment Research