For investors looking for momentum, iShares U.S. Real Estate ETF IYR is probably a suitable pick. The fund just hit a 52-week high and is up 39.9% from its 52-week low price of $76.33/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
IYR in Focus
The fund provides exposure to U.S. real estate companies and REITs, which invest in real estate directly and trade like stocks. It has AUM of $5.58 billion and charges 42 basis points in annual fees.
Why the Move?
Per the latest FOMC minutes, the central bank will patiently wait to attain the “substantial further progress” benchmark before tightening the policy, as stated in a CNBC article. When interest rate drops, mortgage rates fall, making real estate or refinancing mortgages more affordable. This in turn results in higher real estate sales. Further, uncertainty in market conditions due to the resurging coronavirus outbreak and slowdown in the global economy are making investors jittery, adding to the lure of these funds. This is because these funds offer outsized yields and act as good investing options when increased safe-haven trade keeps yields at check.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 37.61, which gives cues of further rally.
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iShares U.S. Real Estate ETF (IYR): ETF Research Reports
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