For investors seeking momentum, SPDR Dow Jones REIT ETF RWR is probably on radar. The fund just hit a 52-week high and is up roughly 48.5% from its 52-week low price of $74.34/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
RWR in Focus
It offers exposure to the broad U.S. real estate sector with key holdings in office REITs, residential REITs, retail REITs and health care REITs. The ETF charges 25 bps in annual fees.
Why the move?
The real estate corner of the broad market has been an area to watch lately. Low rates caused by the dovish Fed and fears for the delta variant of Covid-19 have been keeping the rates low and boosting the rate-sensitive sectors like real estate.
The rise in cost of shelter is also a plus for the real estate stocks and ETFs. Rising home prices have also boosted the demand for renting. The job market is still far from being steady. This means demand for real estates for rent purpose is likely to remain strong from middle-income or low-income consumers.
More Gains Ahead?
Currently, RWR has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. The fund has a positive weighted alpha of 44.86. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.
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SPDR Dow Jones REIT ETF (RWR): ETF Research Reports
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