For investors seeking momentum, Themes Gold Miners ETF (AUMI – Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 82% from its 52-week low of $23.50 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:
AUMI in Focus
Themes Gold Miners ETF offers exposure to the largest companies by market capitalization that derive their revenues from gold mining. Canadian firms account for half of the portfolio, followed by Australian firms with a 32.2% share. AUMI charges 35 bps in fees per year (see: all the Materials ETFs here).
Why the Move
Gold has been an area to watch lately, given the surge in the metal price. The bullion rallied to new all-time highs toward $2,850 per ounce, amid the rush to safe-haven demand triggered by fears of a trade war. Trump tariffs will drive U.S. inflation faster than expected and hurt consumers, driving up the prices of goods and curtailing spending. It will also affect the global economy and corporate profits, particularly that of big U.S. exporters. All these will continue to weigh on the stock market and could disrupt global supply chains.
More Gains Ahead?
AUMI has a weighted alpha of 71.03 and a 20-day volatility of 28.45%, which show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.
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