For investors seeking momentum, Sprott Gold Miners ETF (SGDM – Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 49% from its 52-week low of $23.18 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:
SGDM in Focus
Sprott Gold Miners ETF follows the Solactive Gold Miners Custom Factors Index, which aims to track the performance of larger-sized gold companies whose stocks are listed on Canadian and major U.S. exchanges. SGDM charges 50 bps in fees per year (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 surge in the metal’s price. The ongoing trade tariff disputes and recessionary fears spurred demand for the yellow metal as a safe-haven investment. Trump’s tariffs will drive U.S. inflation faster than expected and hurt consumers, driving up the prices of goods and curtailing spending. Traders are betting that the U.S. economy has lost steam and is on the verge of a recession.
More Gains Ahead?
SGDM has a weighted alpha of 44.00 and a 20-day volatility of 33.2%, which shows that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.
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