Investors seeking momentum may have CurrencyShares Canadian Dollar Trust ETF (FXC - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of FXC are up approximately 13.3% from the 52-week low of $71.70/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.
FXC in Focus
FXC focuses on providing exposure to the Canadian dollar relative to the greenback. It increases in value when the loonie appreciates, and decreases when the dollar strengthens. It charges 40 basis points in fees per year and has AUM of $198.9 million (see all Currency ETFs here).
Why the Move?
Lately, the Canadian economy has been in the spotlight. The Canadian dollar has been reaching new highs, primarily owing to strong economic data. Canada’s economy expanded 4.5% on an annualized basis in the second quarter of 2017, as household spending surged, owing to strong consumer confidence. In response, Bank of Canada hiked the key interest rate to 1% from 0.75% on Sep 6, 2017. Household spending increased an annualized 4.6% in the second quarter compared with 4.8% in the first. The strong two-quarter increase is reflective of consumers’ confidence in future income.
More Gains Ahead?
Currently, FXC has a Zacks ETF Rank #3 (Hold) with a Medium Risk outlook, so it hard to get a handle on its returns. However, the ETF has a weighted alpha of 10.80. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade 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 >>
Investors seeking momentum may have CurrencyShares Canadian Dollar Trust ETF (FXC - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of FXC are up approximately 13.3% from the 52-week low of $71.70/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.
FXC in Focus
FXC focuses on providing exposure to the Canadian dollar relative to the greenback. It increases in value when the loonie appreciates, and decreases when the dollar strengthens. It charges 40 basis points in fees per year and has AUM of $198.9 million (see all Currency ETFs here).
Why the Move?
Lately, the Canadian economy has been in the spotlight. The Canadian dollar has been reaching new highs, primarily owing to strong economic data. Canada’s economy expanded 4.5% on an annualized basis in the second quarter of 2017, as household spending surged, owing to strong consumer confidence. In response, Bank of Canada hiked the key interest rate to 1% from 0.75% on Sep 6, 2017. Household spending increased an annualized 4.6% in the second quarter compared with 4.8% in the first. The strong two-quarter increase is reflective of consumers’ confidence in future income.
More Gains Ahead?
Currently, FXC has a Zacks ETF Rank #3 (Hold) with a Medium Risk outlook, so it hard to get a handle on its returns. However, the ETF has a weighted alpha of 10.80. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade 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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