Click here to listen to previous episodes.
About Chen Lin
Author "What is Chen Buying? What is Chen Selling?" Chen grew $5,400 to $2.3 million in 10 years. Learn More
Large Cap Emerging Markets ETF Surges To New Highs, Now Up 7% This Year
Investors looking for ETFs with rising momentum should begin to consider the Schwab Fundamental Emerging Markets Large Company Index (FNDE). This product just hit a new 52-week high of $25.58 on Monday, and is now up 56.26% from its 52-week low price of $16.37 per share.
Will this ETF continue its string of recent wins? Let’s take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside FNDE’s Rise
As mentioned earlier, FNDE has now gained 56.26% from its 52-week low, which was hit back on January 25, 2016. The fund has now returned 8.76% over the past month, 5.89% over the past three months, and 14.61% in the past six months. Those returns compare very favorably to the benchmark S&P 500 index’s 0.19%, 6.43%, and 5.47% returns in the same periods, respectively. It’s becoming clear that Emerging Markets Equities — especially large cap names — are outperforming their U.S. counterparts.
FNDE currently sits above its 10-day, 20-day, 50-day, 100-day, and 200-day moving averages (MAs), which from a technical standpoint suggests a very strong possibility that the recent gains can continue. That’s because the shares have no short-term overhead resistance to bump up against.
In fact, FNDE is coming within striking distance of its all-time highs around $29 set back in September 2014.
A Look Under The Hood
Schwab Fundamental Emerging Markets Large Company ETF is an Equity-focused product issued by Charles Schwab. Its expense ratio of 0.47% makes it the #14 cheapest ETF among 77 total funds in the Emerging Markets Equities ETFs category.
FNDE currently boasts $804.72M in assets under management (AUM), placing it #9 of 77 ETFs in its category, and #344 of 1922 total ETFs in the U.S. exchange traded universe.
The investment objective of the Schwab Fundamental Emerging Markets Large Company Index ETF is to track as closely as possible the total return of the Russell Fundamental Emerging Markets Large Company Index. Looking at the fund’s top holdings, we see Samsung (6.13%), Petroleo Brasileiro SA (5.20%), Vale SA (4.97%), Gazprom (4.50%), and LUKOIL (3.14%). Aside from Samsung, FNDE is very energy-heavy, and with oil and natural gas prices recovering recently from multi-year lows, it makes sense that this fund has hit new highs.
FNDE SMART Grade: More Gains Ahead?
FNDE currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #8 of 77 funds in the Emerging Markets Equities ETFs category.
A SMART Grade of A suggests very strong future price growth potential, so it’s reasonable to expect even more gains ahead. FNDE thus receives our highest approval.
For more information about this ETF, including full ratings, news, data, and more, please visit FNDE’s ticker page.
Want Important ETF Info Delivered Straight To Your Inbox?
The ETF Daily News Free Daily Newsletter will brief you on top news and analysis, as well as top performing ETFs, each and every day. Get it free »
You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
Powered by WPeMatico