For investors seeking momentum, iShares Currency Hedged MSCI Italy ETF  is probably on radar now. The fund just hit a 52-week high and is up nearly 17.2% from its 52-week low price of $16.02/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.

HEWI in Focus

The fund looks to track the investment results of an index composed of large- and mid-capitalization Italian equities, while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar. (see European Equity ETFs here).

Why the Move?

Italy’s stocks touched the highest level since 2009 as investors ignored political gridlock, per Bloomberg. Though political parties have been incapable of constituting a new government thanks to an inconclusive election in March, the country’s caretaker government passed its latest multi-year conservative economic plan on Apr 26, reaffirming most of the estimates issued in September. This piece of news along with hopes of no policy tightening at the ECB in the near term have probably given a boost to the fund.

More Gains Ahead? 

The fund has a Zacks ETF Rank #3 (Hold). However, the operating backdrop calls for a bullish outlook. Also, it seems that the fund will stay strong in the near term given a positive weighted alpha of 18.10. As a result, there is still some promise for investors who want to ride on this surging ETF.

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