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Southeast Asia ETF (ASEA) Hits 52-Week High

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For investors looking for momentum, Global X Southeast Asia ETF (ASEA - Free Report) is probably on your radar now. The fund just hit a 52-week high and shares of ASEA are up over 16.5% from their 52-week low price of $12.64/share.


But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea on where it might be headed:


ASEA in Focus


ASEA focuses on providing exposure to the members of Association of Southeast Asian Nations that is Singapore (30.64%), Thailand (22.11%), Malaysia (21.77%), Indonesia (20.24%), and Philippines (5.23%) (as of March 31, 2017). The fund has a large-cap focus with key holdings in the Financials, Telecom, and Industrials sectors, with 45.10%, 16.05%, and 7.86% allocation, respectively (as of March 31, 2017). ASEA charges investors 65 basis points a year in fees. Its top holdings include DBS Group Holdings Ltd, Oversea-Chinese Banking Ltd, and United Overseas Bank Ltd with almost 38.5% of the assets allocated to them (see all the Asia Pacific ETFs here).


Why the move?


Positive inflation data in Philippines led the markets higher. Moreover, higher foreign investment flows in the South East Asian markets have been a positive for this ETF. Most recently, the U.S. employment report with better-than-expected job increases in April have led the markets to rise. Non-farm payrolls in the U.S. grew 211,000 in April while the unemployment rate fell to 4.4%. This has increased global market optimism.


More Gains Ahead?


Currently, ASEA has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So it is hard to get a handle on its future returns one way or another. The fund has a weighted alpha of 16.1 and a 14-day standard deviation of 13.97%. So there is still some promise for those who want to ride this surging ETF a little further.


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