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China ETF (CNXT) Hits New 52-Week High
VanEck ChiNext ETF (CNXT - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 60.9% from its 52-week low price of $19.65/share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
CNXT in Focus
The underlying ChiNext Index tracks the performance of the 100 largest and most liquid China A-share stocks listed and trading on the Small and Medium Enterprise Board and the ChiNext Board of the Shenzhen Stock Exchange. The product charges 65 bps in annual fees.
Why the Move?
On Sept. 24, 2024, China's central bank, the People’s Bank of China (PBOC), has announced a broad range of monetary stimulus measures aimed at boosting the world's second-largest economy. This move indicates growing concern within Xi Jinping's administration over the nation’s slowing growth and declining investor confidence. Several China ETFs, thus, have been hovering around a 52-week high.
More Gains Ahead?
Currently, CNXT has a Zacks ETF Rank #5 (Strong Sell) and High risk outlook. However, the ETF is currently on high momentum and might continue its strong performance in the near term, with a positive weighted alpha of 30.00 (as per Barchart.com), which gives cues of a further rally.