(WXM) First Asset Morningstar - Ratings and Ratios

The First Asset Morningstar Canada Momentum Common Class (TO:WXM) is an ETF that tracks the Morningstar Canada GR CAD Index, providing investors with exposure to Canadian equities with a momentum tilt. This fund is designed to capture the performance of Canadian stocks that have demonstrated strong price momentum.

From a technical analysis perspective, WXM is showing a bullish trend, with its current price of $34.08 exceeding its 20-day, 50-day, and 200-day simple moving averages (SMA) of $32.55, $32.33, and $31.26, respectively. The Average True Range (ATR) of $0.55 indicates a moderate level of volatility, corresponding to a daily price movement of approximately 1.61%. Given the current price is at its 52-week high, it suggests a strong uptrend. A potential forecast based on this technical data is that WXM may continue its upward momentum, potentially reaching $35.50 in the near term, assuming the current trend persists.

Fundamentally, the fund has Assets Under Management (AUM) of $563.05M CAD, indicating a moderate level of investor interest. While AUM is an important metric, its also crucial to consider the underlying holdings and the overall market conditions. The Morningstar Canada GR CAD Index is a gross return index, meaning it reflects the total return of the underlying constituents, including dividends. This could be attractive to income-seeking investors. A forecast based on fundamental data would be more robust if we consider the overall Canadian equity market outlook and the momentum factors historical performance. Assuming the Canadian economy continues to grow and the momentum factor remains in favor, WXM could potentially outperform its benchmark, driven by its tilt towards stocks with strong price momentum.

Combining both technical and fundamental insights, a potential forecast for WXM is that it could continue to rise, driven by its strong uptrend and the underlying momentum factor. However, investors should be cautious of potential pullbacks, given the moderate volatility indicated by the ATR. A balanced view would be to maintain a long position, with a stop-loss set around $32.00 to limit potential downside risk. This strategy aligns with the funds objective of capturing the performance of Canadian equities with strong momentum, while managing risk through prudent position sizing and stop-loss levels.