For investors seeking momentum, Lazard Japanese Equity ETF JPY is probably on the radar now. The fund just hit a 52-week high and jumped 38% from its 52-week low price of $27.58 per share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
JPY in Focus
This is an active fund that seeks long-term capital appreciation by investing in undervalued opportunities in the Japanese equity markets. The product charges 60 basis points (bps) in annual fees (See: All Asia-Pacific Developed ETFs here).
What Led to the Rise?
This fund’s new 52-week peak was driven by historic net foreign buying of Japanese equities, backed by a roaring corporate AI boom lifting its top holdings. Also, a structural shift from deflation to rising wages and inflation that favors the fund’s heavy allocation to financial and industrial sectors is likely to have boosted this ETF.
More Gains Ahead?
JPY may continue its strong performance in the near term, with a positive weighted alpha of 32.51 (as per Barchart.com), which suggests a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
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