For investors seeking momentum, VanEck Junior Gold Miners ETF GDXJ is probably on the radar. The fund just hit a 52-week high and is up 189.75% from its 52-week low price of $41.85/share.
But are there 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:
GDXJ in Focus
The underlying MVIS Global Junior Gold Miners Index tracks the overall performance of the gold mining industry, which may include micro and small capitalization companies. The product charges 51 bps in annual fees (See: All Materials ETFs).
Why the Move?
Gold has been an area to watch lately.Increasing central bank buying, ongoing economic uncertainty, expectations of further Fed rate cuts next year and a softer dollar are reinforcing the case for greater exposure to gold. Additionally, with persistent bubble concerns surrounding AI, the precious metal also stands out as a reliable diversification tool for tech-heavy portfolios.
More Gains Ahead?
GDXJ might continue its strong performance in the near term, with a positive weighted alpha of 184.29 (as per Barchart.com), which gives cues of a further rally.
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VanEck Junior Gold Miners ETF (GDXJ): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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