For investors seeking momentum, ETFS Physical Palladium Shares (PALL Quick QuotePALL - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 49.1% from its 52-week low price of $58.74/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 $210.2 million, the ETF owns palladium bullion in plate or ingots kept in Zurich or London under the custody of JPMorgan Chase Bank. The fund 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 in the spotlight lately. Rising deficit and demand from the automotive industry is driving the rally. Palladium-using petrol-fueled cars are “the primary type sold in the two largest markets of China and the US,” as per the source. So, increased usage of petrol-driven vehicles is contributing to the recent rise in palladium price.

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 positive weighted alpha of 33.80%. As a result, there is still some promise for investors who want to ride on this surging ETF.

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