For investors seeking momentum, SPDR Gold MiniShares Trust (GLDM - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 27.8% from its 52-week low price of $11.74 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:
GLDM in Focus
This product seeks to reflect the performance of the price of gold bullion. Being a low-cost product with expense ratio of just 0.18%, GLDM has amassed $905.5 million in AUM (see: all the Precious Metals ETFs here).
Why the Move?
This has been an area to watch lately given the spike in gold price on safe-haven demand as well as global easy monetary policies. The escalation in U.S.-China trade war and global growth concerns raised the appeal for gold as a great store of value and hedge against market turmoil. Acting as a leveraged play on the underlying metal prices, metal miners tend to experience more gains than their bullion cousins in a rising metal market.
More Gains Ahead?
Currently, GLDM has a Zacks ETF Rank #3 (Hold). Therefore, it is hard to get a handle on its future returns one way or the other. However, it seems that GLD might remain strong given a higher weighted alpha of 30.09 and a mediocre 20-day volatility of 15.29%. As a result, there is definitely still some promise for investors, who want to ride on this surging ETF a little further.
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(We are reissuing this article to correct a mistake. The original article, issued on August 14, 2019, should no longer be relied upon.)