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Emerging Market ETF (IEMG) Hits New 52-Week High

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For investors seeking momentum, iShares Core MSCI Emerging Markets ETF (IEMG - Free Report) is probably on radar. The fund just hit a 52-week high and is up 84% from its 52-week low of $35.66 per 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.

IEMG in Focus

This ETF offers exposure to a broad range of emerging market companies. It has key holdings in information technology, consumer discretionary, financials and communications. Among the emerging countries, China takes the top spot at nearly 35% share while South Korea and Taiwan round off the next two spots with a double-digit exposure each. The fund charges 11 bps in fees per year (see: all the Broad Emerging Market ETFs here).

Why the Move?

The emerging markets have been an area to watch lately given their outperformance over the past few months. The super-easy policies, wider rollout of COVID-19 vaccines and Joe Biden’s victory in the U.S. presidential election has bolstered confidence into riskier assets. The administration is looking for a bigger fiscal package and infrastructure spending that would lead to increased demand for metals and industrial products from companies in the emerging markets.

More Gains Ahead?

Currently, IEMG 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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