Markets
EEM

Emerging Market ETF (EEM) Hits New 52-Week High

An image of some people shaking hands
Credit: Shutterstock photo

For investors seeking momentum, iShares MSCI Emerging Markets ETF EEM is probably on radar now. The fund just hit a 52-week high and is up 31.5% from its 52-week low price of $33.94/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:

EEM in Focus

EEM provides exposure to large and small-cap companies in emerging markets. Holding 853 stocks, it is well spread across components with none holding more than 4.71% share. The fund has key holdings in information technology and financials. Chinese firms take the top spot with nearly 29% of assets while South Korea and Taiwan round off the next two spots. It charges a higher 72 basis points in annual fees (see: all the Broad Emerging Market ETFs here ).

Why the Move?

Emerging markets have been an area to watch lately given that threats of political uncertainty in the U.S. have raised the appeal for these stocks. Additionally, a subdued dollar, inexpensive valuation and improving economic growth in many parts of the developing world continue to act as catalysts for the emerging market stocks.

More Gains Ahead?

Currently, EEM has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely some promise for those who want to ride this surging ETF a little further.

Want key ETF info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ISHARS-EMG MKT (EEM): ETF Research Reports

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

EEM

Other Topics

ETFs