Markets

Gold Mining ETF (SGDM) Hits New 52-Week High

For investors seeking momentum, Sprott Gold Miners ETF (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.

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 >>


Click to get this free report

Sprott Gold Miners ETF (SGDM): 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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ETFs

Latest Markets Videos