For investors seeking momentum, Matthews Korea Active ETF MKOR is probably on the radar now. The fund just hit a 52-week high and jumped a solid 172% from its 52-week low price of $25.97 per share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
MKOR in Focus
This fund offers exposure to South Korea-based companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. The product charges 79 basis points (bps) in annual fees (See: Asia-Pacific Developed ETFs here).
What Led to the Rise?
South Korean stocks have been experiencing a record rally lately, primarily driven by explosive, AI-fueled demand for high-bandwidth memory (HBM) chips and proactive corporate governance reforms. This must have led the MKOR fund to touch a new 52-week high peak, with a major share of this ETF’s top holdings allocated to the information technology sector, primarily comprising global memory-chip and semiconductor leaders.
More Gains Ahead?
MKOR may continue its strong performance in the near term, with a positive weighted alpha of 184.26 (as per Barchart.com), which suggests a further rally.
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This article originally published on Zacks Investment Research (zacks.com).