For investors seeking momentum, SPDR S&P Emerging Markets Dividend ETFEDIV is probably on radar now. The fund just hit a 52-week high and is up over 23% from its 52-week low price of $24.47/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 on where it might be headed:
EDIV in Focus
This product offers exposure to emerging market countries that offer high dividend yields. The fund is heavy on Financials, though Consumer Discretionary, Information Technology, Real Estate and Telecom also have a double-digit exposure each. The fund charges 49 bps in fees.
Why the Move?
Emerging market is a segment that falls out of favor in a policy tightening era. However, since the Fed indicated a slower rate hike trajectory as opposed to popular belief in recent times, the greenback and U.S. Treasury bond yield nosedived. This has benefited emerging market funds like EDIV. Since the fund yields about 4.49% annually, investors wagered big on this ETF in search of solid current income.
More Gains Ahead?
The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Plus, the fund has a positive weighted alpha of 16.80 . A positive weighted alpha hints at more gains. As a result, there is definitely still some promise for investors who want to ride on this surging ETF.
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