We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
German ETF (FGM) Hits New 52-Week High
Investors seeking momentum may have First Trust Germany AlphaDEX Fund (FGM - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of ITA are up approximately 34.8% from a 52-week low of $34.12/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
FGM in Focus
FGM focuses on providing exposure to German equities. It charges 80 basis points in fees per year and has top holdings in KION Group AG, Aurubis AG and Rheinmetall AG with 4.51%, 4.30% and 4.28% allocation, respectively (as of August 22, 2017) (see all European Equity ETFs here).
Why the Move?
German factories grew faster than expected in August. Composite Purchasing Managers’ Index (PMI) increased to 55.7 in August from 54.7 in the previous month. Economists expected it to stay steady. Moreover, due to the positive data, economists predict that Germany’s GDP will grow at a faster rate than the currently forecasted 2%.
More Gains Ahead?
Currently, FGM has a Zacks ETF Rank #2 (Buy) with a Medium Risk outlook. Moreover, the ETF has a weighted alpha of 28. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>