For investors seeking momentum, First Trust NASDAQ Global Auto ETF (CARZ - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up roughly 26.1% from its 52-week low price of $28.48/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 pure play global exposure to 33 auto stocks. It is a large cap centric fund with high concentration on the top 10 holdings with about 60.8% of assets. In terms of country exposure, Japan takes the top spot at 33.8% while the U.S. and Germany round off the next two spots with 23.2% and 19.9% 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 as 2016 was another banner year with sales climbing 0.4% year over year to an annualized 17.55 million units, breaking an all-time record of 17.47 million vehicles in 2015. This was especially due to robust light-truck demand, meaty discounts and year-end incentives. Strong consumer confidence, an accelerating U.S. economy, rising income and relatively low fuel prices also drive the auto industry.
More Gains Ahead?
Currently, CARZ has a Zacks ETF Rank of 3 or ‘Hold’ rating with a High risk outlook, so it is hard to get a handle on its future returns in 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 still some promise for those who want to ride on this surging ETF a little longer.
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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 now. The fund just hit a 52-week high, and is up roughly 26.1% from its 52-week low price of $28.48/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 pure play global exposure to 33 auto stocks. It is a large cap centric fund with high concentration on the top 10 holdings with about 60.8% of assets. In terms of country exposure, Japan takes the top spot at 33.8% while the U.S. and Germany round off the next two spots with 23.2% and 19.9% 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 as 2016 was another banner year with sales climbing 0.4% year over year to an annualized 17.55 million units, breaking an all-time record of 17.47 million vehicles in 2015. This was especially due to robust light-truck demand, meaty discounts and year-end incentives. Strong consumer confidence, an accelerating U.S. economy, rising income and relatively low fuel prices also drive the auto industry.
More Gains Ahead?
Currently, CARZ has a Zacks ETF Rank of 3 or ‘Hold’ rating with a High risk outlook, so it is hard to get a handle on its future returns in 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 still some promise for those who want to ride on this surging ETF a little longer.
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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