For traders on the lookout for momentum, VanEck Vectors Gold Miners ETF GDX might be an acceptable decide. The fund simply hit a 52-week excessive and is up 49.7% from its 52-week low worth of $30.64/share.
Let’s check out the fund and its near-term outlook to achieve an perception into the place it is likely to be headed:
GDX in Focus
This ETF seeks to duplicate as intently as doable, earlier than charges and bills, the value and yield efficiency of the NYSE Arca Gold Miners Index, which is meant to trace the general efficiency of firms concerned within the gold mining trade. It has AUM of $14.97 billion and prices 52 foundation factors in annual charges.
Why the Transfer?
Considerations about additional pandemic-related lockdowns as a result of aggravating coronavirus outbreak have as soon as once more prompted a flight to safe-haven property. Furthermore, the decline in U.S. greenback and Fed’s continued dovish stance are supporting the upside within the yellow metallic. Notably, gold is taken into account an amazing retailer of worth and hedge towards market turmoil. That is making funds like GDX a lovely funding possibility.
Extra Positive aspects Forward?
It looks as if it’d stay robust because it has a optimistic weighted alpha of 6.92, which supplies cues of additional rally.
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VANECK-GOLD MNR (GDX): ETF Analysis Experiences
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