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Palladium ETF (PALL) Hits New 52-Week High

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For investors seeking momentum, ETFS Physical Palladium Shares (PALL - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 63% from its 52-week low price of $46.32/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:

PALL in Focus

This fund seeks to match the spot price of palladium, net of fees and expenses. With AUM of $178.2 million, the ETF owns palladium bullion in plate or ingots kept in Zurich or London under the custody of JPMorgan Chase Bank. It has an expense ratio of 0.60% (see: all the Precious Metal ETFs here).

Why the Move?

This corner of the precious metal space has been an area to watch lately given the metal’s outstanding performance of about 15% since the start of the year after a stellar 2016. The impressive rally came on the heels of growing global demand and stagnating supply. Strong car sales in the U.S. and China, Trump’s stimulus package of tax cuts and infrastructure spending, and increasing industrial applications are driving palladium prices higher. Notably, the automotive industry, mainly catalytic converters for vehicles, is a big driver of demand for palladium.

More Gains Ahead?

Currently, PALL has a Zacks ETF Rank of 3 or ‘Hold’ rating with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. It seems that this fund might remain strong given a higher weighted alpha of 58.30% and a higher 20-day volatility of 28.09%. As a result, there is still some promise for investors who want to ride on this surging ETF.

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