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Palladium ETF (PALL) Hits a New 52-Week High

Zacks Equity Research
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Investors seeking momentum may have ETFS Physical Palladium Shares PALL on radar now. The fund recently hit a new 52-week high. Shares of PALL are up approximately 54.0% from their 52-week low of $67.81/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

PALL in Focus

PALL focuses on providing physical exposure to one of the most widely used precious metals, Palladium. It tracks the spot price of the metal by holding bars in a vault, allowing investors to avoid the hassle of storing the physical commodity. PALL charges 60 basis points in fee per year and has AUM of $241.6 million (see all Precious Metals ETFs here).

Why the move?

Palladium prices reached a record high of $1086 per ounce on Tuesday, as a weaker greenback provided support to precious metals. Moreover, the increased appeal of palladium over platinum as a metal to be used in catalytic converters of gasoline vehicles has driven demand higher. Also, supply of the metal is expected to tighten, which has further provided support to the metal.

More Gains Ahead?

PALL has a Zacks ETF Rank #3 (Hold) with a High risk outlook. So it is difficult to get a handle on its future returns one way or another. However, the fund has a weighted alpha of 48.50. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.

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ETFS-PALLADIUM (PALL): ETF Research Reports
 
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