For investors seeking momentum, Global X Gold Explorers ETF (GLDX) is probably on radar now. The fund just hit a 52-week high, which is up roughly 90.7% from its 52-week low price of $14.58/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:
GLDX in Focus
The fund looks to provide exposure to the companies actively involved in gold exploration. GLDX charges investors 65 basis points a year in fees and has top holdings in First Mining Finance, Seabridge Gold Inc and Oceanagold Corp (see all materials ETFs here).
Why the Move?
The gold mining sector has been an area to watch lately as gold is rallying hard on a softer U.S. dollar. Along with the underlying metal gold, gold mining ETFs also put up great gains as these often trade as a leveraged play on gold. Plus, Chinese gold miners are hunting for lucrative foreign acquisitions thanks to lower gold prices so that they can acquire assets at a bargain.
More Gains Ahead?
The fundamentals look favorable for the fund at the current level. Also, the fund has a positive weighted alpha of 51.60. A positive weighted alpha hints at more gains.
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GLBL-X GOLD EXP (GLDX): ETF Research Reports
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Gold Explorers ETF (GLDX) Hits New 52-Week High
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