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MARKETS LIVE BLOG:

STOCKS TRADE HIGHER; DISNEY SINKS AFTER EARNINGS

Disney's surprise streaming entertainment profit offset by weaker TV business

Canadian Dollar ETF (FXC) Hits New 52-Week High

Zacks Equity Research
Updated
Vanda (VNDA) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

Investors seeking momentum may have CurrencyShares Canadian Dollar Trust ETF FXC on radar now. The fund recently hit a new 52-week high. Shares of FXC are up approximately 13.3% from the 52-week low of $71.70/share.


But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.


FXC in Focus


FXC focuses on providing exposure to the Canadian dollar relative to the greenback. It increases in value when the loonie appreciates, and decreases when the dollar strengthens. It charges 40 basis points in fees per year and has AUM of $198.9 million (see all Currency ETFs here).

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Why the Move?


Lately, the Canadian economy has been in the spotlight. The Canadian dollar has been reaching new highs, primarily owing to strong economic data. Canada’s economy expanded 4.5% on an annualized basis in the second quarter of 2017, as household spending surged, owing to strong consumer confidence. In response, Bank of Canada hiked the key interest rate to 1% from 0.75% on Sep 6, 2017. Household spending increased an annualized 4.6% in the second quarter compared with 4.8% in the first. The strong two-quarter increase is reflective of consumers’ confidence in future income.


More Gains Ahead?


Currently, FXC has a Zacks ETF Rank #3 (Hold) with a Medium Risk outlook, so it hard to get a handle on its returns. However, the ETF has a weighted alpha of 10.80. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.


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CRYSHS-CDN DOLR (FXC): ETF Research Reports
 
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Zacks Investment Research
 
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