For investors seeking momentum, WisdomTree Europe Hedged Equity Fund (HEDJ Quick QuoteHEDJ - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up about 11.6% from its 52-week low price of $60.26 per 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:

HEDJ in Focus    

HEDJ offers exposure to the broad European stocks while at the same time provides hedge against any fall in the euro. It has double-digit exposure in five sectors –– consumer discretionary, consumer staples, industrials, materials and financials. France and Germany dominate in terms of country profile as these make up for one-fourth of the portfolio each. The ETF charges 58 bps in annual fees (see: all the European Equity ETFs here).  

Why the Move?

The currency-hedged corner has been an area to watch lately given the surge in the greenback. A strong greenback has eaten away foreign investment gains when repatriated in U.S. dollar terms, pushing them into the red even when international stocks are performing well. As such, investors are flocking to currency hedged ETFs to tap bullish fundamentals, dodging the effects of a strong greenback.

More Gains Ahead?

Currently, HEDJ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. It seems that this fund might remain strong given a weighted alpha of 5.10% and a 20-day volatility of 5.13%. As a result, there is still some promise for investors who want to ride on this surging ETF.

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