For investors looking for momentum, Sprott Gold Miners ETF (SGDM Quick QuoteSGDM - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 120.4% from its 52-week low price of $13.79/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

SGDM in Focus

This ETF seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Gold Miners Custom Factors Index. It has AUM of $224.3 million and charges 50 basis points (bps) in annual fees.

Why the Move?

The coronavirus pandemic is sparking fears of a global economic recession among investors as the outbreak is disrupting global supply chains followed by shut down of economic activities. The market participants also seem to be worried about the pandemic’s impact on corporate earnings. In the wake of the current scenario, investors are rushing to safe-haven assets like gold. Also, low oil prices can be a positive for mining companies as they spend a considerable amount in energy-related production. All these factors are making funds like SGDM attractive.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 104.1, which gives cues of further rally.

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