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Gold ETF (IAU) Hits New 52-Week High

Sweta Jaiswal, FRM

For investors looking for momentum, iShares Gold Trust IAU is probably a suitable pick. The fund just hit a 52-week high and is up roughly 29.9% from its 52-week low of $11.25/share.

But does this ETF have more gains in store? Let’s take a look at the fund and its near-term outlook to gain insight into where it might be headed:

IAU in Focus

The fund seeks to match the day-to-day movement of the price of gold, net of fees and expenses. It owns gold bars to back the shares. IAU is charging 25 bps in fees. The fund has amassed $15.30 billion in AUM (see: all the Precious Metals ETFs here).

Why the Move?

The uncertainty in market conditions due to geo-political tensions, slowdown in the global economic growth and escalating Sino-US trade war tensions are increasingly adding to the appeal of safe-haven picks like gold. Gold is often viewed as a safe-haven asset offering protection against financial risks and may perform well during heightened market volatility.

More Gains Ahead?

Currently, IAU has a Zacks ETF Rank #3 (Hold). Therefore, it is hard to get a handle on its future returns one way or the other. However, it seems that IAU might remain strong given a positive weighted alpha of 32.5.

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iShares Gold Trust (IAU): ETF Research Reports
 
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