For investors seeking momentum, First Trust NASDAQ Global Auto ETF (CARZ - Free Report) is probably on radar. The fund just hit a 52-week high, and is up roughly 112% from its 52-week low price of $19.88/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:
CARZ in Focus
This fund offers a pure-play global exposure to 34 auto stocks. It is a large-cap centric fund with Japanese firms accounting for 31.7% exposure while Germany and the United States round off the next two spots with 24.4% and 16.9% share, respectively. The product charges 70 bps in fees per year (see: all the Consumer Discretionary ETFs here).
Why the Move?
The auto industry has been an area to watch lately given the rebounding sales from the coronavirus-related lows and buyers returning to showrooms. Strong consumer demand for pick-up trucks and sport-utility vehicles as well as lower interest rates are driving the industry’s growth. The Fed has pledged to keep rates at lower levels until the end of 2023 that will continue to accelerate lending and boost consumer spending. Persistent lower interest rates have encouraged new-car buying, pushing more consumers to avail loans.
More Gains Ahead?
Currently, CARZ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For investors seeking momentum, First Trust NASDAQ Global Auto ETF (CARZ - Free Report) is probably on radar. The fund just hit a 52-week high, and is up roughly 112% from its 52-week low price of $19.88/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:
CARZ in Focus
This fund offers a pure-play global exposure to 34 auto stocks. It is a large-cap centric fund with Japanese firms accounting for 31.7% exposure while Germany and the United States round off the next two spots with 24.4% and 16.9% share, respectively. The product charges 70 bps in fees per year (see: all the Consumer Discretionary ETFs here).
Why the Move?
The auto industry has been an area to watch lately given the rebounding sales from the coronavirus-related lows and buyers returning to showrooms. Strong consumer demand for pick-up trucks and sport-utility vehicles as well as lower interest rates are driving the industry’s growth. The Fed has pledged to keep rates at lower levels until the end of 2023 that will continue to accelerate lending and boost consumer spending. Persistent lower interest rates have encouraged new-car buying, pushing more consumers to avail loans.
More Gains Ahead?
Currently, CARZ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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