Heffernan Capital Upgrades Hong Kong ETF

Heffernan Capital Management has upgraded the iShares MSCI Hong Kong Index Fund (NYSE: EWH) to “must own,” the firm's highest rating. The firm placed a $20 2012 price target on the ETF following “sharp and unjustified sell off.”

Year-to-date, the iShares MSCI Hong Kong Index Fund is off more than 23% and the ETF recently violated critical support just below $15, so the $20 price target implies substantial upside from where EWH currently trades.

Home to 42 stocks, EWH has $1.35 billion in assets under management and an expense ratio of 0.53%.

Financials account for over 60% of EWH's sector weight while utilities, consumer discretionary and industrial names combine for another 37%.