SPDR Dow Jones International Real Estate ETF RWX is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 22.3% from its 52-week low price of $22.52/share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
RWX in Focus
The underlying Dow Jones Global ex-U.S. Select Real Estate Securities Index is a float adjusted market capitalization index designed to measure the performance of publicly traded real estate securities in countries excluding the United States. The product charges 59 bps in annual fees and yields 3.27% annually.
Why the Move?
The real estate sector of the market has been an area to watch lately, given the increasing chances of rate cuts globally. The Federal Reserve is expected to cut rates in September. The European Central Bank has already embarked on the monetary policy easing mode. Several other central banks may opt for easy money policies in the near term.
Although Japan is planning to hike benchmark rates, Japan’s prevailing rates are pretty low. With the real estate sector faring better in a low-rate environment, RWX ETF has every chance to outperform. Plus, the ETF offers handsome yield.
More Gains Ahead?
Currently, RWX ETF might continue its strong performance in the near term, with a positive weighted alpha of 12.89 (per Barchart.com), which gives cues of a further rally.
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SPDR Dow Jones International Real Estate ETF (RWX): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
