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This Energy-Heavy Emerging Markets ETF Is Surging To New Highs
Investors looking for ETFs with rising momentum should begin to consider the PowerShares FTSE RAFI Emerging Markets Portfolio (PXH). This product just hit a new 52-week high of $19.31 today, and is now up 64.34% from its 52-week low price of $11.75 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 PXH’s Rise
As mentioned earlier, PXH has now gained 64.34% from its 52-week low, which was hit back on January 20, 2016. The fund has now returned 9.22% over the past month, 2.97% over the past three months, and 13.10% in the past six months. Those returns compare favorably — especially in the past month and half year — to the benchmark S&P 500 index’s 0.45%, 6.54%, and 5.43% returns in the same periods, respectively.
PXH 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.
A Look Under The Hood
PowerShares FTSE RAFI Emerging Markets Portfolio is an Equity-focused product issued by Invesco PowerShares. Its expense ratio of 0.49% makes it the #15 cheapest ETF among 77 total funds in the Emerging Markets Equities ETFs category.
PXH currently boasts $657.74M in assets under management (AUM), placing it #11 of 77 ETFs in its category, and #391 of 1920 total ETFs in the U.S. exchange traded universe.
The investment objective of the PowerShares FTSE RAFI Emerging Markets Portfolio ETF is based on the FTSE RAFI Emerging Markets Index. The Index is designed to track the performance of the largest Emerging Market equities, selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends.
Taking a look at the top holdings of PXH, we find the fund is heavily weighted toward foreign energy companies, specifically oil producers. With oil prices making a huge recovery over the past year, it makes sense that this fund would benefit.
PXH SMART Grade: More Gains Ahead?
PXH currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #10 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. Thus, PXH receives our stamp of approval.
For more information about this ETF, including full ratings, news, data, and more, please visit PXH’s ticker page.
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