For investors seeking momentum, WisdomTree Japan SmallCap Dividend ETFDFJ is probably on radar now. The fund just hit a 52-week high and is up more than 0.3% from its 52-week low price of $62.97/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.
DFJ in Focus
DFJ focuses on acquiring small-cap Japanese stocks by following the WisdomTree Japan SmallCap Dividend Index. It holds 687 stocks in its basket. It maintains a well-diversified portfolio with key holdings in the industrials, consumer discretionary, financials and materials. The fund charges investors 58 basis points a year in fees (see: all Asia-Pacific (Developed) ETFs here ).
Why the Move?
The major Japanese benchmark Nikkei gained on Friday to reach its highest level in the past six months following a strong increase in the financial sector. This in turn had a positive impact on this ETF. Rise in yields on global bonds primarily boosted the financial sector as it raised chances of an increase in investment on global bonds especially in the prevailing environment of low bond yield in Japan.
More Gains Ahead?
Currently, DFJ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. A positive weighted alpha of 17.00 hints at more gains. So there is definitely some promise for those who want to ride this surging ETF a little further.
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