(EEMX) SPDR MSCI Emerging Markets - Ratings and Ratios

The SPDR® MSCI Emerging Markets Fossil Fuel Reserves Free ETF (NYSE ARCA:EEMX) is an exchange-traded fund that focuses on emerging markets while excluding companies with significant fossil fuel reserves. By doing so, it caters to investors seeking to align their investments with environmental, social, and governance (ESG) considerations.

Under normal market conditions, EEMX invests at least 80% of its total assets in securities that comprise its underlying index, which is designed to track the performance of emerging market companies that pass a specific screening methodology related to fossil fuel reserves. The fund is categorized as non-diversified, indicating that it may invest a larger portion of its assets in a smaller number of holdings, potentially increasing its risk profile compared to diversified funds.

From a technical analysis perspective, EEMX has shown a bullish trend, with its last price of $35.76 being above its 20-day Simple Moving Average (SMA) of $34.39, 50-day SMA of $33.70, and 200-day SMA of $33.33. The Average True Range (ATR) indicates a relatively moderate volatility of 1.76%. Given the proximity of the current price to its 52-week high of $35.92 and above its 52-week low of $29.58, it suggests a strong upward momentum. A potential forecast based on technical indicators could be that EEMX may continue to test its 52-week high or potentially break through if the bullish trend persists.

Fundamentally, the Assets Under Management (AUM) of $79.98M USD indicate a relatively smaller ETF, which could result in lower liquidity and potentially higher trading costs. However, this also presents an opportunity for growth if the fund attracts more investors aligning with the ESG trend. Combining technical and fundamental analysis, a forecast for EEMX could be that it continues to attract investors due to its ESG focus, potentially driving its price upwards. The upward trend indicated by technical indicators, coupled with a growing interest in ESG investments, could position EEMX for further growth, potentially testing new highs.

Investors should be cautious, however, as the non-diversified nature of the fund and its focus on emerging markets introduce specific risks, including higher volatility and potential geopolitical risks. Therefore, while the forecast suggests potential for growth, its essential for investors to weigh these risks and consider their overall investment strategy and risk tolerance.