Investors seeking momentum may have Deutsche X-trackers MSCI Germany Hedged Equity Fund DBGR on radar now. The fund recently hit a new 52-week high. Shares of DBGR are up approximately 27.7% from the 52-week low of $22.6/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.
DBGR in Focus
DBGR offers exposure to the German equity market. It charges 45 basis points in fee per year and has top holdings in SAP SE (DE:SAPG), Bayer AG (DE:BAYGN) and Allianz (DE:ALVG) SE with 7.7%, 7.5% and 7.4% allocation, respectively (as of Oct 26, 2017) (see all European equity ETFs here).
Why the Move?
European equity markets have been in the spotlight lately. German businesses are really confident of the economic conditions impacting their businesses. Institute for Economic Research’s (Ifo) October reading for the business climate in the region increased to a record high of 116.7 compared with 115.3 in September. Moreover, German stocks touched record highs as European Central Bank (ECB) extended its asset purchase program but reduced the amount of bond purchases every month.
More Gains Ahead?
Currently, DBGR has a Zacks ETF Rank #3 (Hold) with a Medium Risk outlook, so it is hard to get a handle on its returns. However, the ETF has a weighted alpha of 21.5. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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DEUTS-XT MS GER (DBGR): ETF Research Reports
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Zacks Investment Research