For investors seeking momentum, VanEck Egypt Index ETF is probably on radar. The fund just hit a 52-week high and is up 66% from its 52-week low of $15.73 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 of where it might be headed:

EGPT in Focus

VanEck Egypt Index ETF offers exposure to companies that are incorporated in Egypt or that are incorporated outside Egypt but have at least 50% of their revenues/related assets in Egypt. It has key holdings in financials, materials, and real estate with double-digit exposure each. VanEck Egypt Index ETF charges 1.24% in annual fees (see: all the Africa-Middle East Equity ETFs here.

Why the Move?

The Egypt market of the broad investing world has been an area to watch lately, given the rally in the country’s stock market. Investors view Egyptian stocks as a hedge against high inflation and a weakening Egyptian pound. The Central Bank of Egypt has devalued the Egyptian pound thrice since March 2022 and speculations of further devaluation before the upcoming presidential elections are rife.

More Gains Ahead?

Currently, EGPT has a Zacks ETF Rank #5 (Strong Sell) with a High-risk outlook, suggesting that the fund might not continue its outperformance in the months ahead. However, a high weighted alpha of 63.60 and a 20-day volatility of 54.43% shows that there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.