For investors seeking momentum, WisdomTree Brazilian Real Strategy ETF (BZF) is probably on radar now. The fund just hit a 52-week high, which is up roughly 43.5% from its 52-week low price of $12.09/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:
BZF in Focus
BZF looks to attain total returns reflective of both money market rates in Brazil available to foreign investors and changes in value of the Brazilian Real relative to the U.S. dollar. BZF charges investors 45 basis points a year in fees (see all currency ETFs here).
Why the Move?
The currency gained despite the Fed rate hike concern, as lawmakers agreed upon a proposal to cap increases in public spending. This in turn will help in lowering the near-record budget deficit.
Currently, BZF has a positive weighted alpha of 38.20. A positive weighted alpha hints at more gains.
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