Investors seeking momentum may have First Trust Germany AlphaDEX Fund (FGM Quick QuoteFGM - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of ITA are up approximately 34.8% from a 52-week low of $34.12/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.

FGM in Focus

FGM focuses on providing exposure to German equities. It charges 80 basis points in fees per year and has top holdings in KION Group AG, Aurubis AG and Rheinmetall AG with 4.51%, 4.30% and 4.28% allocation, respectively (as of August 22, 2017) (see all European Equity ETFs here).

Why the Move?

German factories grew faster than expected in August. Composite Purchasing Managers’ Index (PMI) increased to 55.7 in August from 54.7 in the previous month. Economists expected it to stay steady. Moreover, due to the positive data, economists predict that Germany’s GDP will grow at a faster rate than the currently forecasted 2%.

More Gains Ahead?

Currently, FGM has a Zacks ETF Rank #2 (Buy) with a Medium Risk outlook. Moreover, the ETF has a weighted alpha of 28. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.

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