Investors looking for momentum can keep Columbia India Consumer ETF (JK:INCO) on their radar now. The fund just hit a new 52-week high. Shares of INCO are up roughly 37.5% from its 52-week low price of $31/share.
But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea on where it might be headed:
INCO in Focus
INCO focuses on providing exposure to Indian equities in the consumer industry. Consumer Discretionary and Consumer Staples are the two sectors of the fund, with 59.87% and 40.13 allocation, respectively (as on March 31, 2017). It charges 89 basis points in fees per year and has top holdings in Nestle India Ltd, Britannia Industries Ltd, and Hindustan Unilever (LON:ULVR) Ltd with almost 15% collective allocation to them (see all Broad Emerging Market ETFs here).
Why the Move?
Lately, the Indian economy has been gaining a lot of traction, as investors look at emerging market investments amid uncertainty over President Trump’s protectionist agenda. Consumer Confidence in India increased to 136 in Q4 2016 from 133 in Q3 2016. Prime Minister Narendra Modi’s tax plan and a normal monsoon are further expected to boost stock markets in India. Moreover, owing to declining inflation, Reserve Bank of India is under pressure to slash rates. Lower rates are expected to increase the attractiveness of Indian investments to investors abroad.
More Gains Ahead?
Currently, INCO has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Moreover, it has a weighted alpha of 34.3 and a low 14-day volatility of 9.92%. Undoubtedly, there’s a promising outlook ahead for those who want to ride this surging ETF a little further.
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COL-INDIA CNSMR (INCO): ETF Research Reports
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