Investors seeking momentum may have First Trust Canada AlphaDEX Fund FCAN on radar now. The fund recently hit a new 52-week high. Shares of FCAN are up approximately 19.1% from their 52-week low of $22.06/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
FCAN in Focus
FCAN focuses on providing exposure to companies in the Canadian equity market. The fund has key holdings in the Materials, Energy and Industrials sectors, with a respective allocation of 24.0%, 17.0% and 15.0%. FCAN charges investors 80 basis points in fee per year. Its top holdings include Teck Resources Ltd. (Class B), Air Canada and West Fraser Timber Co. Ltd., with almost 16% of the assets allocated to them (see all Canadian Equity ETFs here).
Why the move?
Canadian equities reached a record high owing to a rally in commodity prices. Crude has been rallying owing to the supply cuts. This provided a boost to energy and materials sectors in the Canadian equity markets. Moreover, the healthcare sector jumped on higher share prices of marijuana companies.
More Gains Ahead?
FCAN has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So it is difficult to get a handle on its future returns one way or another. However, the fund has a weighted alpha of 14.9. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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FT-CANADA (FCAN): ETF Research Reports
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Zacks Investment Research