For investors seeking momentum, First Trust NASDAQ Global Auto Index Fund (CARZ - Free Report) is probably on radar now. The fund just hit a 52-week high and is up more than 28% from its 52-week low price of $34.43/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:
CARZ in Focus
This 34-stock fund looks to track the NASDAQ OMX Global Auto Index. Daimler AG, Toyota Motor and Honda Motor hold the top three spots in the fund. The product charges 70 bps in fees. The fund is heavy on Japan (34.65%), followed by United States (21.66%) and Germany (19.86%) (see all Consumer Discretionary ETFs here).
Why the Move?
Though U.S. auto industry’s seven-year sales growth streak halted in 2017, the demand for new vehicles like SUVs remains steady. In fact, sales at motor vehicle & parts dealers increased 0.2% in December versus 1% decline in November. Plus, there are reports that global automobile sales will rise in 2018, thanks to demand from emerging markets, especially a recovery in Russia. This explains the auto ETF’s recent run-up.
More Gains Ahead?
The fund has a Zacks ETF Rank #3 (Hold). Still, it seems that this fund might stay strong given a positive weighted alpha of 27.00. There is still some promise for investors who want to ride on this surging ETF.
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 >>