For investors seeking momentum, iShares MSCI Eurozone ETF EZU is probably on the radar. The fund just hit a 52-week high and is up 29.5% from its 52-week low of $46.02 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:
EZU in Focus
iShares MSCI Eurozone ETF offers exposure to large- and mid-capitalization equities from developed market countries that use the euro as their official currency. France dominates the fund portfolio with a 31.2% share, while Germany and the Netherlands round off the next two countries with double-digit exposure each. It charges 51 bps in annual fees (see: all the European Equity ETFs here).
Why the Move?
The European market of the broad investing world has been an area to watch lately, given the rally in the country’s stocks. The Eurozone economy is exhibiting decent growth with easing EU-US trade tensions, expanding trade, higher defense spending, and reforms to boost competitiveness to further support the growth and resilience of the Eurozone economy. As the Eurozone continues its economic recovery, EZU remains a compelling option for investors seeking exposure to European markets.
More Gains Ahead?
Currently, EZU has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, EZU might remain strong, given its weighted alpha of 21.65 and a lower 20-day volatility of 10.46%. There is definitely still some promise for investors who want to ride on this surging ETF.
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iShares MSCI Eurozone ETF (EZU): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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