For investors seeking momentum, SPDR S&P Metals and Mining ETF (XME Quick QuoteXME - Free Report) is probably on radar now. The fund just hit a 52-week high and is up over 192% from its 52-week low price of $11.38/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:

XME in Focus    

This product offers exposure to the U.S. metal and mining stocks. No stock accounts for more than 8.32% of the fund. AK Steel, United States Steel Corp and Cliffs Natural Resources are top three stocks of the fund. The fund charges 35 bps in fees (see all materials ETFs here).

Why the Move?

The dual dose of Trump and China boosted the metals and mining space. Trump’s pledge to invest in infrastructure activities also went in favor of some metals, which are used as raw materials of infrastructural activities.

Plus, China's factory activity grew at its fastest clip in over two years in November. Since the Chinese economy accounts for about half of the global consumption of the industrial commodities, the surge in metal and mining stocks are self-explanatory.

More Gains Ahead?

It seems that XME might continue with its strength given a positive weighted alpha of 122.34. Since a positive weighted alpha hints at more gains, there is definitely still some promise for investors who want to ride this surging ETF a little further.

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