Weekly Feature | Nasdaq Dorsey Wright

Weekly Feature

Published: September 3, 2020

This content is for informational purposes only. This should not be construed as solicitation. The general public should consult their financial advisor for additional information related to investment decisions.

WIth no changes to any of the iShares models, we take a look at the iShares iShares MSCI All Country Asia ex-Japan ETF (AAXJ).

There are no changes to any of the iShares models this week. Since peaking in March the US dollar index DX/Y has fallen approximately 10%; as a result, in yesterday’s Daily Equity Report, we updated our US dollar study which shows how various assets perform in rising and falling US dollar environments. As the table below shows, international equities, represent by the iShares EAFE ETF EFA and iShares Emerging Markets ETF EEM, tend to be strong performers in a falling dollar environment.

Those who are interested in adding exposure to international equities in light of the dollar’s recent trend may wish to consider the iShares MSCI All Country Asia ex-Japan ETF AAXJ, which recently reached a new multi-year high when it broke a spread triple top at $77. AAXJ currently has a near-perfect 5.66 fund score, 2.21 points better than the average for all non-US equity funds, and a positive 3.80 fund score direction. Year-to date (through 9/3) the fund has gained 7.58% on a price return basis and comes with a 1.54% yield. A weekly overbought/oversold reading of 71% puts AAXJ slightly above the ideal action range, so those adding exposure may be best served to look for a slight pullback or wait until prices normalize at current levels. AAXJ has most recently found support at $73, with further support afforded at $67.

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DISCLOSURE

**Unless otherwise stated, the performance numbers herein are based on price returns and do not include dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. BlackRock sponsors the Dorsey Wright iShares ETF Models. However, analysis, models and recommendations are created and provided solely by Dorsey, Wright & Associates (Dorsey Wright). Neither BlackRock, BlackRock Advisors and its affiliates, nor SEI Investments Distribution Co. or its affiliates (SEI) are affiliated with Dorsey Wright. Neither BlackRock nor SEI provides investment advice or recommendations regarding any security, fund or market. Analysis, models and recommendations should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security, including iShares. The examples presented do not take into consideration commissions, tax implications, or other transactions costs. No individual risk management tools are used in maintaining this model. This model may not be suitable for all investors. As the investment professional making the final decision with respect to allocations, remember to adhere to NASD Rules 2090 and 2111 (formerly NYSE Rule 405, Know Your Customer). The percentage of the portfolio devoted to any iShares strategy, as well as final individual weightings are at the sole discretion of the financial advisor and not Dorsey, Wright & Associates, BlackRock or SEI Investments Distribution Co. or its affiliates (SEI) . If you are not familiar with the Point & Figure methodology, we suggest you read "Point & Figure Charting, 4th Edition" by Thomas J. Dorsey or visit the PnF University at www.dorseywright.com. If you are not familiar with the iShares products, or Exchange Traded Funds (ETFs), we suggest you visit www.ishares.com for more information.