(UFMA) UBS(Lux)Fund Solutions – - Ratings and Ratios

The UBS(Lux)Fund Solutions – MSCI Japan UCITS ETF(hedged EUR)A-acc is an exchange-traded fund designed to replicate the performance of the MSCI Japan Index (Net Return), while mitigating the effects of currency fluctuations between the euro and the Japanese yen through a hedging strategy. This is achieved by selling currency forwards at the one-month forward rate, in line with the methodology employed by the Indexs currency-hedged variant.

From a technical standpoint, the ETF has demonstrated a bullish trend, with its current price of 28.22 euros exceeding its short-term (SMA20: 27.37) and long-term (SMA50: 27.06, SMA200: 27.05) moving averages. The Average True Range (ATR) indicates a moderate level of volatility, with a recent ATR of 0.60, equivalent to 2.13% of the current price. Given the current technical setup, it is likely that the ETF will continue its upward trajectory, potentially testing the 52-week high of 29.50.

Fundamentally, the ETFs assets under management (AUM) stand at 117.35 million euros, indicating a relatively modest but still viable level of investor interest. The hedging strategy employed by the ETF aims to insulate investors from adverse currency movements, making it an attractive option for those seeking exposure to the Japanese equity market without the associated currency risks.

Combining technical and fundamental insights, a forecast for the UBS(Lux)Fund Solutions – MSCI Japan UCITS ETF(hedged EUR)A-acc suggests that it may continue to rise, driven by the ongoing bullish trend and the potential for further gains in the underlying MSCI Japan Index. However, investors should remain vigilant regarding potential volatility and currency fluctuations, as indicated by the ATR and the hedging strategy. A target price of 29.00-30.00 euros appears plausible in the short to medium term, assuming the current trend persists and the hedging strategy remains effective.