Avantis Emerging Markets Equity ETF (AVEM Quick QuoteAVEM - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 17.06% from its 52-week low price of $50.65/share.

Are more gains in store for this ETF? Let us 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.

AVEM in Focus

The fund employs an active strategy seeking long-term capital appreciation by investing primarily in a diverse group of companies related to emerging markets across market sectors, industry groups and countries. The fund has major exposure to China (23%), India (20%) and Taiwan (19%). The product charges 9 bps in annual fees (see: Broad Emerging Market ETFs).

Why the Move?

The emerging market (EM) has been an area to watch lately, supported by the ongoing U.S.-led global economic growth. Anticipated monetary policy loosening in the United States and the eurozone further contributes to the improving outlook for EMs. Moderating inflation level fueling investor confidence, along with the likelihood of many EMs opting for interest rate cuts in 2024, bode well for EM funds.

More Gains Ahead?

AVEM might continue its strong performance in the near term, with a positive weighted alpha of 12.42, which gives cues of a further rally.