For investors seeking momentum, iShares MSCI Brazil ETF (EWZ Quick QuoteEWZ - Free Report) is probably a suitable pick. The fund just hit a 52-week high — up roughly 30.1% from its 52-week low of $36.65/share.

Does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

EWZ in Focus

The underlying MSCI Brazil 25/50 Index consists of stocks traded primarily on the BM&FBOVESPA. It is a free float-adjusted market capitalization-weighted index. The fund charges 60 bps in fees (see all Latin American Equity ETFs here).

Why the Move?

The Brazilian economy has been growing better than expected. The third-quarter’s GDP data marked the strongest growth rate since the first quarter of 2018.The country’s central bank also beefed up its 2020 economic growth forecast on expectations of solid reforms. S&P Global Ratings are talked to be boosting Brazil's sovereign rating “if a cut in its deficit as a percentage of GDP is confirmed.” All these positive new flows explain the latest high in the fund.

More Gains Ahead?

The fund has a Zacks ETF Rank #3 (Hold). However, it has a positive weighted alpha of 26.10, which gives cues of further rally.

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