For investors seeking momentum, First Trust China AlphaDEX Fund (FCA - Free Report) is probably on radar now. The fund just hit a 52-week high of $26.59. Shares of FCA are up roughly 44.4% from their 52-week low price of $18.42/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:
FCA in Focus
The fund looks to track the performance of the NASDAQ AlphaDEX China Index. The fund has 51 stocks in total. Real Estate, Consumer Discretionary, Information Technology and Materials have a double-digit weight in the fund. The fund charges 80 bps in total fees (see all Asia-Pacific (Emerging) ETFs here).
Why the Move?
Sentiments around Chinese stocks have been upbeat lately. According to the official data released in mid-July, China's GDP, urban investment, factory output and retail sales data beat economists’ expectations. While China has been struggling with high debt levels, an improving economic outlook and higher external demand for Chinese products may help the country to fight its debt issue, as per the source.
More Gains Ahead?
The fund has a positive weighted alpha of 39.30. A positive weighted alpha hints at more gains. As a result, there is definitely still some promise for investors who want to ride on this surging ETF.
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