Выбор редакции

South Africa ETF (EZA) Hits New 52-Week Low

For investors interested in finding out the painful areas of investing, iShares MSCI South Africa ETF (EZA) is probably on the radar now. The fund just hit a 52-week low, and shares of EZA are down roughly 38% from their 52-week high price of $73.08/share.

Are more pains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better idea of where it might be headed:

EZA in Focus

EZA looks to track the performance of the South African equity market. The fund focuses on large caps with key holdings in the materials, financials and telecommunication services sectors. EZA charges investors 62 basis points a year in fees and has top holdings in Naspers Limited N Ltd, MTN Group Ltd and Sasol Ltd (see all Africa-Middle East Equity ETFs here).

Why the Move?

The South African equity market has been an area to watch lately as South Africa’s president replaced finance minister Nhlanhla Nene after less than two years of his appointment with David Van Rooyen. Per reports, Nene's efforts to cut back spending were not well-accepted by all. This political upheaval dragged down the South African currency to an all-time low and punished the stocks.  This along with the looming Fed lift-off bet soured investors’ mood toward South African investing.

More Pains Ahead?

Currently, EZA has a Zacks ETF Rank #4 (Sell). So, it is wise to flee the space at the current level as an emerging market sell-off may take place in the coming days after the Fed implements a short-term rate hike. Things will likely take some more time to stabilize.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ISHARS-S AFRICA (EZA): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report