Markets

Small-Cap Europe ETF (EUSC) Hits New 52-Week High

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For investors seeking momentum, WisdomTree Europe Hedged SmallCap Equity Fund EUSC is probably on radar now. The fund just hit a 52-week high and is up over 28% from its 52-week low price of $20.57/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:

EUSC in Focus

EUSC focuses on the small-cap equities segment of the European market and nullify exposure to fluctuations of the Euro movements relative to the US dollar. The fund has a small-cap focus with the industrials, financials and consumer discretionary sectors getting a double-digit allocation each.

It charges investors 58 basis points a year in fees and is heavily concentrated on the top three holdings - UnipolSai SpA, Hugo Boss AG and Eutelsat Communications (see: all European Equity ETFs here).

Why the Move?

The U.S. economy has been on the path of monetary policy tightening while the Euro zone still practicing super-easy monetary policies. Investors should also note that the business and consumer sentiment have been at about a six-year high in the European Union. Euro zone inflation was 1.1% in December, marking the highest inflation level since September 2013.

An easy money era along with an improving economy is creating a great situation for those in the small-cap segment of the European market as this capitalization better reflects the domestic economy. Plus, a currency-hedged approach in a rising dollar environment was another positive for the fund.

More Gains Ahead?

The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. However, it seems that EUSC might continue with its strength given a positive weighted alpha of 17.30 . Since a positive weighted alpha hints at more gains, there is definitely still some promise for investors who want to ride this surging ETF a little further.

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WISDMTR-EUR HSC (EUSC): ETF Research Reports

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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.

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