For investors looking for momentum, Sprott Gold Miners ETF (SGDM Quick QuoteSGDM - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 153.4% from its 52-week low price of $13.79/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

SGDM in Focus

This ETF seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Gold Miners Custom Factors Index. It has AUM of $281.5 million and charges 50 basis points (bps) in annual fees.

Why the Move?

The second wave of coronavirus pandemic is sparking fears of a global economic recession among investors as the outbreak is disrupting global supply chains followed by the shutdown of economic activities. The market participants also seem to be worried about the pandemic’s impact on corporate earnings. Accordingly, in the wake of the current scenario, investors are rushing to safe-haven assets like gold. This is making funds like SGDM an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 87.80, which gives cues of further rally.

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