From Zacks: For investors seeking momentum, MSCI Pakistan ETF (PAK – Free Report) is probably on their radar now. The fund just hit a 52-week high and is up about 50.2% from its 52-week low price of $12.00/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
PAK in Focus
This product offers exposure to the large and liquid companies in Pakistan by tracking the MSCI All Pakistan Select 25/50 Index. Financials, materials and energy are the top three sectors of the fund with double-digit weight each. The fund charges 0.68% in expense ratio (see: Broad Emerging Market ETFs).
Why the Move?
This Pakistan ETF has been picking up momentum lately on improved capital mobility and liquidity. The country has been working on a turnaround. The country’s economy is growing at a decent rate of approximately 4.5% per annum. The country’s young population could act as a key catalyst to long-term growth.
More Gains Ahead?
It seems that PAK might continue with its strength given a high weighted alpha of 44.10%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.
Global X MSCI Pakistan ETF (NYSE:PAK) was trading at $17.96 per share on Thursday morning, down $0.06 (-0.33%). Year-to-date, PAK has gained 2.63%, versus a 1.30% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Zacks Research.