For investors looking for momentum, the Europe ETF (EZU Quick QuoteEZU - Free Report) is probably on your radar now. The fund just hit a 52-week high of $37.87. Shares of EZU are up roughly 27.20% from their 52-week low price of $29.71/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: 

 

 

EZU focuses on providing exposure to EMU member countries, as in those who have adopted the euro. The fund has a large cap focus. It has key holdings in the Financials, Industrials, and Consumer Cyclical sectors, with almost 50% allocation to them. From a geographical perspective, France, Germany, and Netherlands comprise a little over 70% of the fund assets. The fund charges 48 basis points in fees. It has around 23% allocated to its top 10 holdings and the top three holdings are Total SA, Sanofi SA, and Siemens AG (see all European equity ETFs here). 

 

The fund has AUM of $8.96 billion and trades in an average volume of 4.96 million shares.

 

 

The Euro zone has been in the spotlight recently. There is increased optimism in the region, owing to the defeat of populist leader Geert Wilders in Netherlands, a probable victory for Emmanuel Macron in France as indicated by polls and a win for Angela Merkel’s party in a state election in Germany. Reduced tension in the region has contributed to the movement in the market (read: Merkel's Party Wins State Election: German ETF in Focus).

 

 

Currently, EZU has a Zacks ETF Rank #3 (Hold) with a Medium Risk outlook. So it is hard to get a handle on its future returns one way or another. However, the ETF has a weighted alpha of 14.60 and a moderate 14-day standard deviation of 9.87%. So there is definitely some promise for those who want to ride this surging ETF a little further. 

 

 

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>