For investors seeking momentum, WisdomTree Global ex-U.S. Hedged Dividend Fund (DXUS - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 17.8% from its 52-week low price of $21.78/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:
DXUS in Focus
This ETF offers global-ex U.S. exposure to dividend-paying companies in the developed and developing economies while hedge currency fluctuations of a basket of foreign currencies relative to the U.S. dollar. It has key holdings in Japan and United Kingdom accounting for 19.1% and 13.7% share, respectively. From a sector look, financials dominates the fund’s portfolio with about one-fourth share while industrials and consumer discretionary round off the top three with a double-digit exposure each. It charges 44 basis points in annual fees (see: all the World ETFs here).
Why the Move?
The global stock market has been an area to watch lately given a pickup in economic activity in many parts of the world, robust corporate earnings, and improving investor sentiment. Additionally, political gridlock in Washington and fading hopes in Trump’s pro-growth reforms act as tailwind to the international market. Further, a weak dollar has added to the strength.
More Gains Ahead?
Currently, DXUS has a Zacks ETF Rank of 3 or ‘Hold’ rating 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 still some promise for those who want to ride on this surging ETF a little longer.
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