U.S. Markets closed

Small-Cap Europe ETF (EUSC) Hits New 52-Week High

For investors seeking momentum, WisdomTree Europe Hedged SmallCap Equity Fund EUSC is probably on radar now. The fund just hit a 52-week high and is up over 25% from its 52-week low price of $20.57/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

EUSC in Focus    

EUSC focuses on the small-cap equities segment of the European market and nullify exposure to fluctuations of the Euro movements relative to the US dollar. The fund has a small-cap focus with the industrials, financials and consumer discretionary sectors getting a double-digit allocation each.

It charges investors 58 basis points a year in fees and is heavily concentrated on the top three holdings – UnipolSai SpA, Eutelsat Communications and Hugo Boss AG (see: all European Equity ETFs here).

Why the Move?

The European Central Bank announced this month that it would lower its bond buying program to 60 billion euros a month from 80 billion from April, but extended the program to December 2017, or beyond, should there be necessity. Earlier, the planned conclusion of the QE program was March 2017.

Investors should also note that things across the pond are crawling toward improvement. The ECB also upped its GDP growth forecast from 1.60% projected earlier to 1.70% for 2017. An easy money era along with an improving economy created a great situation for those in the small-cap segment of the European market as this capitalization better reflects the domestic economy.  Plus, a currency-hedged approach in a rising dollar environment was another positive for the fund.

 More Gains Ahead?

The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. However, it seems that EUSC might continue with its strength given a positive weighted alpha of 8.00. Since a positive weighted alpha hints at more gains, there is definitely still some promise for investors who want to ride this surging ETF a little further.

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 >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
WISDMTR-EUR HSC (EUSC): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report