For investors seeking momentum, Xtrackers MSCI Europe Hedged Equity ETF DBEU is probably on the radar. The fund just hit a 52-week high and is up 19% from its 52-week low of $38.58 per share.
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:
DBEU in Focus
Xtrackers MSCI Europe Hedged Equity ETF targets developed markets in Europe, while mitigating exposure to fluctuations between the value of the U.S. dollar and the currencies of the countries included in the MSCI Europe US Dollar Hedged Index. It has key holdings in financials, industrials, and healthcare. DBEU charges 45 bps in annual fees (see: all the European Equity ETFs here).
Why the Move?
The European stock market has been an area to watch lately, given the delay in EU tariffs. The European Union has agreed to accelerate tariff negotiations with the United States, easing fears of a trans-Atlantic trade war. The decision came after President Trump announced that the United States would postpone the implementation of a 50% tariff increase on all EU products, from June 1 to July 9, to allow time for further talks.
More Gains Ahead?
Currently, DBEU 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. DBEU might remain strong, given its weighted alpha of 10.80 and a lower 20-day volatility of 12.29%. There is definitely still some promise for investors who want to ride on this surging ETF.
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Xtrackers MSCI Europe Hedged Equity ETF (DBEU): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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