Europe Financials ETF (EUFN) Hits New 52-Week High
Zacks Investment Research | Apr 25, 2017 02:02AM ET
For investors looking for momentum, the iShares MSCI Europe Financials ETF EUFN is probably on your radar now. The fund just hit a 52-week high. Shares of EUFN are up roughly 48.5% from their 52-week low price of $14.31/share.
But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea on where it might be headed:
EUFN in Focus
EUFN focuses on providing exposure to the financial sector of Europe. From a geographical perspective, it has around 29.23% exposure to the UK, 11.69% to Switzerland, and 11.56% to France. It charges 48 basis points in fees per year and has top holdings in HSBC Holdings (LON:HSBA) PLC, Banco Santander (MC:SAN) SA, and Allianz (DE:ALVG) with a collective 19.8% allocation to them (see all European Equity ETFs here ).
The fund has AUM of $917.07 million and trades in average volumes of 1.04 million shares.
Why the Move?
The move can mainly be attributed to the results of the first run-off of the French presidential elections that was held on Sunday, April 23, 2017. Emmanuel Macron and Marine Le Pen emerged victorious and will be facing each other in the second run-off on May 7, 2017. Emmanuel Macron garnered the most support, with 24% of the votes, almost 3 percentage points higher than Le Pen’s 21.3%. This instilled investors’ confidence as they expect the anti-European Union Le Pen to lose in the second run-off. Therefore, investors are confident and are looking at this region as a potential investment.
More Gains Ahead?
Currently, EUFN has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So it is hard to get a handle on its future returns one way or another. Though it has a high 14-day volatility of 26.10%, the fund has an impressive weighted alpha of 20.50 . So, there is definitely still some promise for those who want to ride this surging ETF a little further.
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