For investors seeking momentum, AdvisorShares Dorsey Wright ADR ETF AADR is probably on the radar. The fund just hit a 52-week high and has gained 34.6% from its 52-week low of $53.59 per share.
Are more gains in store for this ETF? Let us 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:
AADR in Focus
The AdvisorShares Dorsey Wright ADR ETF seeks long-term capital appreciation above international benchmarks such as the MSCI EAFE Index and the BNY Mellon Classic ADR Index. AADR charges 110 bps in fees per year. The ETF yields 1.29% annually.
Why the Move?
Wall Street was in the red on Tuesday as strong economic data dampened chances of near-term Fed rate cuts. With the AADR ETF offering exposure to the world markets, sometimes act as a defensive play. Markets outside the U.S. don’t always rise and fall at the same time as the domestic market. Investing in both international and domestic securities may help you counter some of the portfolio’s volatility and spread out risk more than if just holding domestic securities. The ETF AADR was up 0.04% on Jan. 7, 2025.
More Gains Ahead?
AADR might continue its strong performance in the near term, with a positive weighted alpha of 29.34(per Barchart.com), which cues another rally.
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