For investors seeking momentum, Xtrackers Japan JPXNikkei 400 Equity ETF (JPN – Free Report) is probably on radar now. The fund just hit a 52-week high, and is up roughly 24.4% from its 52-week low price of $27.96/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:
JPN in Focus
The underlying JPX-Nikkei 400 Net Total Return Index is designed to reflect the performance of the Japanese stock market, specifically companies which are primarily listed on the Tokyo Stock Exchange. The product charges 9 bps in fees per year.
Why the Move?
After underperforming for several months, Japan stocks have gained momentum lately on hopes of a stronger government ahead of a ruling party leadership race and a general election in November. The resignation of Prime Minister Yoshihide Suga has opened the door for the new government, which will likely unveil an economic package to support pandemic-hit businesses and families. As such, the move has spurred bets for strong economic recovery by the end of the year.
More Gains Ahead?
Currently, JPN has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. The fund has a positive weighted alpha of 19.49. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.