For investors seeking momentum, VanEck Vectors Junior Gold Miners ETF GDXJ is probably on radar. The fund just hit a 52-week high, and is up 174% from its 52-week low price of $19.52 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:
GDXJ in Focus
This fund offers exposure to small-capitalization companies that are involved primarily in the mining for gold and silver. Canadian firms account for 41.8% of the portfolio, while Australia (22.3%) and South Africa (11.2%) round off the top three. The fund charges 53 bps in annual fees (see: all the Materials ETFs here).
Why the Move?
The gold mining space has been an area to watch lately given the resurgence in COVID-19 infections, which has raised the appeal for the metal as a great store of value and hedge against market turmoil. The central banks across the globe have adopted aggressive stimulus measures and kept interest rates low to combat the sharp economic slowdown that has added to the metal’s strength.
More Gains Ahead?
It seems that GDXJ might remain strong given a higher weighted alpha of 139.70 and 20-day volatility of 46.31%. As a result, there is definitely still some promise for investors, who want to ride on this surging ETF a little further.