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iShares MSCI BRIC ETF (BKF) Hits a New 52-Week High

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For investors looking for momentum, iShares MSCI BRIC ETF (BKF - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 55.6% from its 52-week low price of $31.75/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

BKF in Focus

This ETF seeks to track the investment results of an index composed of China equities that are available to international investors, and Brazilian, Russian, and Indian equities. It has AUM of $253.8 million and charges 69 basis points in annual fees.

Why the Move?

The coronavirus outbreak continues to aggravate in the United States and globally. In order to contain the spread of the virus, governments across the globe are once again shutting down economic activities and imposing social-distancing measures. However, China continues to see economic growth and is rebounding from the pandemic-driven slowdown. It is consistently showing a stronger control on the pandemic. Going on, Jack Ma's Ant Group just announced the biggest IPO in public equity market history. The shares will be hitting the public exchanges in Hong Kong and Shanghai on Nov 5, 2020. Notably, Alibaba (BABA), which has a 33% ownership of this financial technology giant, can also gain from the rapidly digitalizing China economy. Also, according to the International Monetary Fund’s World Economic Outlook released earlier in October, China continues to be the only major economy globally to see growth in 2020, per the sources. In the current scenario, funds like BKF appear an attractive investment option and also provide portfolio diversification benefits.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 15.30, which gives cues of further rally.

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