(THU) TD U.S. Equity CAD Hedged - Ratings and Ratios

The TD U.S. Equity CAD Hedged Index ETF (THU) is a Canadian ETF that tracks the Morningstar US Market TR CAD Index, providing investors with exposure to the US equity market while hedging against currency fluctuations. This ETF is designed for investors seeking to diversify their portfolios with US stocks without the risk associated with CAD/USD exchange rate volatility.

From a technical analysis perspective, THU has shown a bullish trend, with its last price of $39.37 exceeding both its 20-day and 50-day simple moving averages (SMA20: $37.12, SMA50: $36.68), indicating a positive short-term momentum. The ETFs price is also above its 200-day SMA ($38.08), suggesting a longer-term uptrend. The Average True Range (ATR) of 0.82, representing a 2.09% daily price range, indicates moderate volatility. Given these technical indicators, a potential forecast could be that THU continues its upward trend, potentially reaching or surpassing its 52-week high of $40.67 if the US equity market continues to perform well.

Fundamentally, THU has $51.81 million CAD in assets under management (AUM), indicating a relatively modest but still viable size for an ETF. The CAD-hedged nature of the fund appeals to Canadian investors looking to tap into the US market without currency risk. Considering the current AUM and the ETFs tracking of a broad US market index, its reasonable to forecast that THU could attract more investors if the US market continues to grow or remains stable, potentially leading to an increase in AUM and possibly stabilizing or slightly increasing its price.

Combining both technical and fundamental analyses, a forecast for THU could be that it maintains its upward trajectory, supported by a strong US equity market and the appeal of its CAD-hedged structure to Canadian investors. If the US market continues to perform well and theres sustained investor interest in US equities, THU could potentially see its price move towards or beyond its current 52-week high. However, any significant downturn in the US market could negatively impact THUs price. Investors should monitor both the US equity markets performance and currency hedging strategies to make informed decisions.