GX Copper Miners ETF (COPX Quick QuoteCOPX - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 47.89% from its 52-week low price of $31.65/share.

Are more gains in store for this ETF? Let us 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.

COPX in Focus

The underlying Solactive Global Copper Miners Total Return Index is designed to reflect the performance of the copper mining industry. It comprises selected companies globally that are actively engaged in some aspect of the copper mining industry. The product charges 65 bps in annual fees (see: all Materials ETFs).

Why the Move?

Copper has been an area to watch lately, given the surge in the price of the metal. Production cut by Chinese smelters is one of the reasons behind the rally in the metal’s price. Being a crucial component of the energy transition, a global push for renewable energy has resulted in growing demand for copper, fueling the rally in its prices.

Further, the rising probability of the Fed cutting interest rates from the second half of 2024 has also brightened the prospects for the red metal.

More Gains Ahead?

COPX might continue its strong performance in the near term, with a positive weighted alpha of 26.74, which gives cues of a further rally.