(EL40) Deka MSCI Emerging Markets - Ratings and Ratios

The Deka MSCI Emerging Markets UCITS ETF (XETRA: EL40) is a Germany-based exchange-traded fund designed to provide exposure to emerging markets equities. It tracks the Morningstar EM TME NR USD index, which focuses on total return performance of emerging market equities. The fund is structured as a UCITS-compliant ETF, offering investors a regulated and transparent vehicle for accessing global emerging markets.

From a technical perspective, the ETF currently trades at 47.68 EUR, below its 20-day SMA of 49.22 and 50-day SMA of 48.35, but slightly above its 200-day SMA of 47.08. This indicates short-term bearish momentum but long-term bullish structure. The Average True Range (ATR) of 0.67 reflects moderate volatility, while the 20-day average volume of 3,859 shares suggests lower liquidity compared to larger ETFs.

Fundamentally, the ETF manages assets under management (AUM) of 87.89 million EUR, positioning it as a moderately sized fund in the emerging markets equity category. Its size reflects a balance between accessibility for retail investors and institutional participation. The funds tracking error and expense ratio are not disclosed here but are critical factors for investors evaluating its efficiency in replicating the underlying index.

Based on technical and fundamental analysis, the ETF is expected to face headwinds in the short term due to its current position below key SMAs. However, its long-term outlook remains stable, supported by the 200-day SMA. Trading volumes may remain subdued unless emerging markets experience significant macroeconomic shifts. The AUM is likely to remain stable, reflecting sustained investor interest in diversifying into emerging markets.

Technically, the ETF may test support near its 200-day SMA of 47.08 if downward momentum persists. Resistance is expected at the 50-day SMA of 48.35. Breakouts above this level could signal a reversal of the short-term downtrend. The ATR of 0.67 suggests that price fluctuations will remain contained, limiting sharp movements in either direction.

Fundamentally, the ETFs performance will largely depend on the broader emerging markets landscape. Any improvement in global risk sentiment or stabilization in key emerging economies could drive inflows and support asset growth. Conversely, geopolitical tensions or currency volatility may weigh on the funds performance. Investors should monitor macroeconomic indicators and index composition changes for additional insights.