We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
China ETF (PGJ) Hits New 52-Week High
For investors seeking momentum, Invesco Golden Dragon China ETF (PGJ - Free Report) is probably a suitable pick. The fund just hit a 52-week high — up roughly 43.9% from its 52-week low of $30.67/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:
PGJ in Focus
The underlying NASDAQ Golden Dragon China Index is currently comprised of 38 U.S. exchange-listed stocks of companies that derive a majority of their revenues from the Peoples Republic of China. The fund charges 70 bps in fees (see all Asia-Pacific (Emerging) ETFs here).
Why the Move?
The CSI 300 of Shanghai- and Shenzhen-listed companies touched their highest level since February 2018. This happened because China’s central bank injected about $115 billion into the country’s financial system by slashing the reserve requirement ratio for commercial lenders across the board by 50 basis points. Meanwhile, a survey indicated continued improvement in China’s manufacturing sector. All these positive news 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 37.20, which gives cues of further rally.
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>>