We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
For investors seeking momentum, iShares MSCI Brazil Small-Cap (EWZS - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up about 112.5% from its 52-week low price of $6.25 per 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:
EWZS in Focus
This ETF looks to track the MSCI Brazil Small Cap Index. The fund has a small cap focus with key holdings in the consumer discretionary, utilities, and materials segments. EWZS charges investors 63 basis points a year in fees and has top holdings in Bradespar Pref SA, Estacio Participacoes SA and Companhia De Saneamento Do Parana (see: Latin American Equity ETFs here).
Why the Move?
In view of cooling inflation (which has once been at the sky-high level) and soft economic growth, Brazil embarked on an aggressive policy easing cycle. On January 11, the central bank cut the interest rate by 75 basis points to 13.00%, surpassing market expectations of a cut of 50 bps. This was followed by two back-to-back cuts of 25 basis-points each.
Also, Brazilian Finance Minister expects the country to return to the growth path and escape recession in the first quarter of 2017. This gave a boost to consumer confidence in Brazil as low rates provide some relief to the debt-ridden families. Since small-cap stocks better reflect the domestic economy, recent gains in EWZS are self-explanatory.
More Gains Ahead?
Currently, EWZS has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook. However, investors with a strong stomach for risks can still play it as long as market fundamentals remains the same. This is because the fund has a positive weighted alpha of 91.50. A positive weighted alpha hints at more gains.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Small-Cap Brazil ETF (EWZS) Hits New 52-Week High
For investors seeking momentum, iShares MSCI Brazil Small-Cap (EWZS - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up about 112.5% from its 52-week low price of $6.25 per 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:
EWZS in Focus
This ETF looks to track the MSCI Brazil Small Cap Index. The fund has a small cap focus with key holdings in the consumer discretionary, utilities, and materials segments. EWZS charges investors 63 basis points a year in fees and has top holdings in Bradespar Pref SA, Estacio Participacoes SA and Companhia De Saneamento Do Parana (see: Latin American Equity ETFs here).
Why the Move?
In view of cooling inflation (which has once been at the sky-high level) and soft economic growth, Brazil embarked on an aggressive policy easing cycle. On January 11, the central bank cut the interest rate by 75 basis points to 13.00%, surpassing market expectations of a cut of 50 bps. This was followed by two back-to-back cuts of 25 basis-points each.
Also, Brazilian Finance Minister expects the country to return to the growth path and escape recession in the first quarter of 2017. This gave a boost to consumer confidence in Brazil as low rates provide some relief to the debt-ridden families. Since small-cap stocks better reflect the domestic economy, recent gains in EWZS are self-explanatory.
More Gains Ahead?
Currently, EWZS has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook. However, investors with a strong stomach for risks can still play it as long as market fundamentals remains the same. This is because the fund has a positive weighted alpha of 91.50. A positive weighted alpha hints at more gains.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>