For investors seeking momentum, WisdomTree Brazilian Real Strategy Fund is probably on their radar now. The fund just hit a 52-week high and is up roughly 46.5% 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 its near-term outlook to get a better idea of 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. The fund has a total asset base of $25.9 million and trades in average daily volume of 21,000 shares (see Currency ETFs here).

Why the Move?

The Brazilian currency has managed to appreciate despite the rate hike and hawkish comments by the U.S. Federal Reserve. Meanwhile, the country’s central bank announced larger-than-expected interest rate cut. Brazil, which is suffering from the worst recession in its history, is looking to boost its economy with this move.  

More Gains Ahead?

Currently, the fund has a positive weighted alpha of 38.20. A positive weighted alpha hints at more gains.

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