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Steel ETF (SLX) Hits New 52-Week High
For investors seeking momentum, VanEck Steel ETF (SLX - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 29.7% from its 52-week low of $57.31per 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 of where it might be headed:
SLX in Focus
The underlying NYSE Arca Steel Index tracks the overall performance of companies involved in the steel sector. The ETF charges 56 bps in annual fees. The ETF yields 3.28% annually (see: all the Materials ETFs here).
Why the Move?
President Donald Trump signed an executive order in early February imposing a 25% tariff on steel and aluminum imports from all countries.The tariffs, set to take effect on March 4, apply without exceptions or exemptions. Steel ETF SLX has been in great shape following the announcement of Trump tariffs (read: ETFs to Win/Lose as Trump Imposes 25% Tariffs on Steel and Aluminum).
More Gains Ahead?
The SLX ETF might not continue its strong performance in the near term, with a negative weighted alpha of 8.15 (as per Barchart.com). Its potential for further run could be limited.