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China ETF (GXC) Hits a New 52-Week High

Investors looking for momentum can keep SPDR S&P China ETF GXC on their radar now. The fund recently hit a new 52-week high. Shares of GXC are up approximately 33.6% from its 52-week low of $70.33 per share.


But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.


GXC in Focus


GXC focuses on providing exposure to large-cap equities in China. From a sector look, it has high exposure to Information Technology, Financials and Consumer Discretionary, with 32.60%, 22.89% and 11.99% allocation, respectively (as of July 18, 2017). It charges 59 basis points in fees per year and has top holdings in Tencent Holdings Ltd, Alibaba Group Holding Ltd and China Construction Bank Corporation with 12.32%, 10.61% and 4.82% exposure, respectively (as of July 18, 2017) (see all Asia-Pacific Emerging ETFs here).


Why the Move?


Chinese stocks have been in the news lately. The Chinese economy grew faster than expected in the second quarter of 2017. The National Bureau of Statistics reported an increase of 6.9% in GDP compared with analyst expectations of 6.8%. Moreover, solid economic and earnings news coupled with falling crude prices also led to an optimistic outlook across Asian markets.


More Gains Ahead?


Currently, GXC has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. It has a low 14-day volatility of 15.09% and a weighted alpha of 35.4. So, there is still some promise for those who want to ride this surging ETF a little further.


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SPDR-SP CHINA (GXC): ETF Research Reports
 
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