For investors seeking momentum, Real Estate Select Sector SPDR Fund XLRE is probably on radar now. The fund just hit a 52-week high, and is up 18.6% from its 52-week low price of $29.52 per 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:
XLRE in Focus
This product seeks to provide exposure to companies from real estate management and development and REITs, excluding mortgage REITs. It is concentrated on the top firm at 11.2% while other firms account for less than 8.1% share. It charges investors 13 basis points a year in fees (see: all the Real Estate ETFs here ).
Why the Move?
The real estate corner of the broad market has been an area to watch lately given the Fed's dovish stance that has returned the lure for the rate-sensitive stocks. Additionally, still-unresolved U.S.-China trade war, global growth concerns, geopolitical tensions and Brexit concerns are making investors jittery, raising the appeal for these stocks. This is because these often act as a safe haven in times of market turbulence and concurrently offer higher returns due to their outsized yields.
More Gains Ahead?
Currently, XLRE has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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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.