Investors seeking momentum may have First Trust Hong Kong AlphaDEX Fund FHK on radar now. The fund recently hit a 52-week high. Shares of FHK are up approximately 15.2% from the 52-week low of $31.82/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.
FHK in Focus
FHK focuses on providing exposure to the Hong Kong stock market. The fund has a large cap focus. It charges 80 basis points in fees per year and has top holdings in Orient Overseas (International) Limited, Kingboard Chemical Holdings Limited and Nine Dragons Paper (Holdings) Limited with 5.08%, 4.58% and 4.30% allocation, respectively (as of August 8, 2017) (see all Asia-Pacific (Developed) ETFs here).
Why the Move?
Lately, the Asian markets have been in the spotlight. There is increased optimism in the region, owing to better economic sentiment. Some upward momentum was provided from the most-recent U.S. jobs data. Moreover, better-than-expected earnings have also contributed to the optimism in the region. Also, the city’s central bank plans to sell debt instruments called Exchange Fund Bills. This led to a surge in the Hong Kong dollar.
More Gains Ahead?
Currently, FHK has a Zacks ETF Rank #3 (Hold) with a Medium Risk outlook, so it hard to get a handle on its returns. However, the ETF has a weighted alpha of 17.90 and a moderate 14-day standard deviation of 11.18%. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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FT-HONG KONG (FHK): ETF Research Reports
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Zacks Investment Research