Investors seeking momentum may have KraneShares MSCI All China Health Care Index ETF (KURE Quick QuoteKURE - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of KURE are up approximately 50.02% from their 52-week low of $18.49/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

KURE in Focus

The underlying MSCI China All Shares Health Care 10/40 Index is a free float adjusted market capitalization weighted index designed to track the equity market performance of Chinese companies engaged in the health care sector. KURE charges investors 65 basis points in fee per year (see all Asia-Pacific (Emerging) ETFs here).

Why the move?

Healthcare and biotech stocks and ETFs gained globally amid the ongoing medical emergency. China is no exception. China’s healthcare and biotech firms have raised a record $6.8 billion in fresh equity-linked transactions this year, per Reuters.

China’s healthcare expenditure made up only 6.6% of its GDP in 2018, compared with 17.7% in the United States, per Reuters. So, COVID-19 raised the importance of investing more in the Chinese healthcare system.

In any case, the Chinese biopharmaceutical and healthcare industry is thriving with opportunities right now. China is a big market with about $1.26 billion population, which has always been a point of interest for both Chinese and Western providers of drugs.

More Gains Ahead?

The fund has a weighted alpha of 39.26. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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