Investors should steer clear of iShares MSCI UAE ETF (UAE - Free Report) for now. The fund recently hit a new 52-week low. Shares of UAE are down roughly 10.4% from its 52-week high of $18.08/share.
But is more pain in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might be headed.
UAE in Focus
UAE focuses on providing exposure to the UAE stock market. UAE charges 62 basis points in fee per year and has AUM of $40.2 million (see all Africa-Middle East Equity ETFs here).
Why the move?
The global markets have been witnessing a seesawing performance lately, as tensions relating to trade have been on the rise. China announced retaliatory tariffs in response to Trump’s policies. Trump’s response to this was a proposal of additional tariffs on $100 billion worth of Chinese imports. Although market experts expect this to be a mere negotiation tactic, it led to investors adopting a cautious stance and did not bode well for the global equity markets. Stocks across the globe took a hit.
More Losses Ahead?
UAE has a weighted alpha of -7.90. Moreover, the fund has a Zacks ETF Rank #4 (Sell) with a High risk outlook. So, the outlook for this fund remains quite bleak.
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