For investors seeking momentum, iShares Asia 50 ETF AIA is probably on the radar. The fund just hit a 52-week high and is up 35.11% from its 52-week low price of $59.33/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:
AIA in Focus
The underlying S&P Asia 50 Index is a total float-adjusted, market capitalization-weighted index designed to measure the performance of the 50 leading companies listed in four Asian countries or regions, namely, Hong Kong, Singapore, South Korea and Taiwan. The product charges 50 bps in annual fees (See: All Asia-Pacific (Developed) ETFs).
Why the Move?
Asian markets have been an area to watch lately, driven by easing trade tensions. Washington and Beijing resuming trade talks in London is a key tailwind. Asian markets traded higher after China and the United States announced that they had agreed on a framework to build on the trade truce reached in Geneva last month.
More Gains Ahead?
Currently, AIA has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 24.10 (as of Barchart.com), which gives cues of a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
