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Xtrackers MSCI Europe Hedged Equity ETF (DBEU) - free report >>
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Xtrackers MSCI Europe Hedged Equity ETF (DBEU) - free report >>
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Europe Hedged Equity ETF (DBEU) Hits New 52-Week High
For investors looking for momentum, the Deutsche X-trackers MSCI Europe Hedged Equity ETF (DBEU - Free Report) is probably on your radar now. The fund just hit a 52-week high. Shares of DBEU are up roughly 18.27% from their 52-week low price of $22.77/share.
But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea on where it might be headed:
DBEU in Focus
DBEU focuses on providing exposure to equities of 15 developed European nations, while hedging the currency impact. Financials, Consumer Staples, and Health Care are the top three sectors, with 19.96%, 13.69%, and 12.69% allocation, respectively (as on April 4, 2017). From a geographical perspective, it has over 60% exposure to the United Kingdom, France, and Germany combined. It charges 45 basis points in fees per year and has top holdings in Nestle SA, Roche Holding AG, and Novartis AG with a meager 7% allocation to them (see all European Equity ETFs here).
Why the move?
Lately, the Euro region has been gaining a lot of traction. Better-than-expected economic results, a March Purchasing Managers Index of 56.7 and Economic Sentiment Indicator reaching 107.9 in the Euro area have contributed to the confidence among investors. Further, a recent poll by Elabe on April 5, 2017 indicates that Le Pen is expected to lose majorly in the second run off in the French Presidential elections on May 7, 2017. Therefore, investors are confident and are looking at this region as a potential investment.
More Gains Ahead?
Currently, DBEU has a Zacks ETF Rank #3 (Hold). So it is hard to get a handle on its future returns one way or another. However, it has a weighted alpha of 10.7 and a low 14-day volatility of 6.19%. So, there is definitely still some promise for those who want to ride this surging ETF a little further.
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