For investors seeking momentum, iShares MSCI Sweden ETF () is probably on the radar. The fund just hit a 52-week high and moved up 22.09% from its 52-week low price of $30.68/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 of where it might be headed: EWD in FocusThe underlying MSCI Sweden 25/50 Index consists of stocks traded primarily on the Stockholm Stock Exchange. The fund has major exposure in the industrial sector, with an allocation of 47.61% of its assets, followed by the financial (21.65%) and information technology sector (7.64%). The product charges 54 bps in annual fee. Why the Move?After Sweden’s economy contracted this year by 0.25%, Danske Bank’s optimistic outlook for Sweden’s economy next year, is a tailwind. The bank estimates the European country to grow 1.3%, driven by robust manufacturing investments, stable consumer spending and a steady retail sales figure. The increasing probability of the Swedish central bank reducing its interest rates next year is another key tailwind for the fund. More Gains Ahead?Currently, EWD has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. However, it might continue its strong performance in the near term, with a , which gives cues to a further rally.More By This Author:
Sweden ETF (EWD) Hits New 52-Week High
