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Gold Miner ETF (GDX) Hits New 52-Week High

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For investors seeking momentum, VanEck Gold Miners ETF (GDX - Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 65.8% from its 52-week low of $32.84 per share. 

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:

GDX in Focus

Market Vectors Gold Mining ETF offers exposure to companies involved in the gold mining industry. Canada firms make up 43.3% of the portfolio, while U.S. and Australia firms take the next spots with 16% and 11.7% share, respectively. GDX charges just 51 bps in fees and expenses (see: all the Materials ETFs here).

Why the Move

The gold mining sector of the broad stock market has been an area to watch lately, given the rally in the metal’s price. Escalating tensions between Israel and Iran raised the appeal for safe-haven demand. The yellow metal serves as a hedge against market turmoil and is often used as a means of preserving wealth during times of financial and political uncertainty, typically performing well when other asset classes struggle.

More Gains Ahead?

GDX has a weighted alpha of 69.36 and a 20-day volatility of 30.84%, which shows that there is still some promise for investors who want to ride on this surging ETF.


 


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