U.S. markets close in 7 minutes
  • S&P 500

    +9.67 (+0.25%)
  • Dow 30

    +43.71 (+0.14%)
  • Nasdaq

    +24.00 (+0.21%)
  • Russell 2000

    -6.51 (-0.37%)
  • Crude Oil

    -0.96 (-0.96%)
  • Gold

    -24.30 (-1.38%)
  • Silver

    +0.07 (+0.36%)

    -0.0089 (-0.87%)
  • 10-Yr Bond

    +0.1040 (+3.70%)

    -0.0035 (-0.29%)

    +0.0960 (+0.07%)

    -80.84 (-0.40%)
  • CMC Crypto 200

    +5.18 (+1.19%)
  • FTSE 100

    +82.30 (+1.17%)
  • Nikkei 225

    -315.82 (-1.20%)

Taiwan ETF (EWT) Hits a New 52-Week High

For investors looking for momentum, iShares MSCI Taiwan Capped ETF EWT is probably on radar now. The fund just hit a 52 week high, and shares of EWT are up roughly 38.7% from their 52 week low price of $26.38/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:

EWT in Focus

EWT focuses on the Taiwanese equity market. This ETF invests its assets in 92 securities. However, with over one-fifth of the total exposure being on a single company, Taiwan Semiconductor, EWT has significant concentration risk.

Hon Hai takes up the second position in the portfolio with 10.11% share. However, the rest of the stocks do not occupy more than 2.78% of the fund. Sector-wise, EWT relies heavily on information technology (57.8%), financials (16.8%) and materials (9.4%). The fund has an expense ratio of 64 basis points (see all Asia-Pacific (Developed) ETFs here).

Why the Move?

Overall business optimism in Asia remains quite upbeat. This accompanied with an increase in tech shares, created a great situation for the fund. Bullishness on the fundamentals of Taiwan Semiconductor and Hon Hai Precision Industry in fact sent Taiwan shares to a 27-year high.

More Gains Ahead?

Currently, EWT carries a Zacks ETF Rank #2 (Buy), which creates a bullish case scenario. Plus, the fund has apositive weighted alpha of 29.40. A positive weighted alpha hints at more gains. As a result, there is definitely still some promise for investors who want to ride on this surging ETF.

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
ISHRS-MS TAIWAN (EWT): ETF Research Reports
To read this article on Zacks.com click here.