For investors seeking momentum, Global-X Brazil Consumer ETF (BRAQ - Free Report) is probably on radar now. The fund just hit a new 52-week high and is up nearly 63.9% from its 52-week low price of $11.08/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:
BRAQ in Focus
This fund offers exposure to the performance of the consumer sector in Brazil. It holds a small basket of 33 stocks with no stock holding more than 6.24%. The fund charges 77 bps in fees.
Why the Move?
Credit goes to the upbeat Brazilian economic growth. The Brazilian economy grew 0.2% sequentially in the second quarter of 2017, after growing 1% in the previous period and beating market expectations of 0.1% expansion. Household spending rose for the first time in two and a half years. This clearly shows that Brazilian consumers played a major role in economic recovery.
More Gains Ahead?
It seems that this fund might stay strong given a positive weighted alpha of 49.70%. As a result, there is still some promise for investors who want to ride on this surging ETF.
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