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For investors seeking momentum, WisdomTree Japan Hedged Financials ETF DXJF is probably on radar now. The fund just hit a 52-week high and is up over 18% from its 52-week low price of $21.93/share.
But 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 on where it might be headed:
DXJF in Focus
This product offers exposure to financial companies in Japan, while at the same time hedging exposure to fluctuations between the value of the U.S. dollar and the Japanese yen. Tokio Marine Holdings, Dai-ichi Life Holdings and MS&AD Insurance Group Holdings are the top three holdings of the fund. It charges 48 bps in fees (see all Asia-Pacific (Developed) ETFs here).
Why the Move?
As the Fed is likely to enact a rate hike this month, the greenback has gained strength. This has helped the currency-hedged Japan ETF as the country is still practicing easy money policy. Recent gains in the Japanese financial space has also favored the fund.
More Gains Ahead?
The fund has a positive weighted alpha of 7.50. A positive weighted alpha hints at more gains. As a result, there is definitely some promise for investors who want to ride on this surging ETF.
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