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South Korea ETF (DBKO) Hits New 52-Week High

For investors looking for momentum, Deutsche X-trackers MSCI South Korea Hedged Equity ETF DBKO is probably on the radar now. The fund just hit a 52-week high and shares of DBKO are up over 28.9% from their 52-week low price of $21.85/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:


DBKO in Focus


DBKO focuses on providing exposure to the equities of South Korea. The fund has a large-cap focus with key holdings in the Industrials, Financials, and Consumer Discretionary sectors, with 37.18%, 14.00%, and 12.82% allocation, respectively (as of May 5, 2017). DBKO charges investors 58 basis points a year in fees. Its top holdings include Samsung Electronics Co Ltd, SK Hynix Inc, and Hyundai Motor Co with almost 30.7% of the assets allocated to them (see all the Asia Pacific ETFs here).


Why the move?


Earlier this year, former president, Park Geun-hye was impeached by the court owing to a corruption scandal. South Koreans are now set to go to the polls to elect their new president on May 9, 2017. The last polls showed Moon Jae-In as the frontrunner. Moon Jae-In’s plans to revert to the sunshine policy to reduce tensions with the North has garnered him a lot of support. Therefore, investors are confident and are looking at this region as a potential investment.


More Gains Ahead?


Currently, DBKO has a Zacks ETF Rank #3 (Hold) with a Low risk outlook. So it is hard to get a handle on its future returns one way or another. The fund has a weighted alpha of 28.35 and a 14-day standard deviation of 10.70%. So there is still some promise for those who want to ride this surging ETF a little further.


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DEUTS-XT MS SK (DBKO): ETF Research Reports
 
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