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Investors seeking momentum may have Deutsche X-trackers Harvest MSCI All China Equity Fund (V:CN) on radar now. The fund recently hit a new 52-week high. Shares of CN are up approximately 51.1% from their 52-week low of $25.9/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.
CN in Focus
CN focuses on providing exposure to the large-cap sector of the Chinese equity market. The fund has key holdings in the Information Technology, Financials and Consumer Discretionary sectors, with an allocation of 28%, 25% and 11%, respectively. CN charges investors 62 basis points in fee per year. Its top holdings include Xtrackers Harvest CSI 300 China A-Shares ETF, Tencent Holdings Ltd and Alibaba (NYSE:BABA) Group Holding Ltd-SP ADR with almost 55% of the assets allocated to them (see all the Asia-Pacific (Emerging) ETFs here).
Why the move?
Of late, Chinese tech markets have been performing well. Recently, Chinese tech giant Tencent surpassed Facebook (NASDAQ:FB) in market value. It became the first Asian company to cross market value of $500 billion. Tencent reported strong quarterly results and is looking to expand into Malaysia. This led to a rally in the stock.
More Gains Ahead?
Currently, CN has a Zacks ETF Rank #3 (Hold) with a High 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 36.4. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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