US Mining ETF Approaches All-Time High on Policy and Price Surge

SPDR® S&P Metals and Mining ETF US78464A7550

The SPDR® S&P Metals and Mining ETF (XME) is trading near its 52-week peak of $135.68, fueled by a powerful combination of government policy and soaring commodity prices. This rally, which accelerated in late January, raises questions about the sustainability of its momentum in the face of current valuations.

Recent gains for the ETF have been substantial. It has advanced 26.86% over the past month, which also represents its year-to-date performance, and has surged 117.64% over the last twelve months. The fund held approximately $5.12 billion in assets under management as of mid-January. Its portfolio is concentrated on companies involved in steel, silver, and uranium production.

Key Catalysts for the Rally