Markets

S&P 500 Real Estate ETF (EWRE) Hits New 52-Week High

For investors looking for momentum, Invesco S&P 500 Equal Weight Real Estate ETF EWRE is probably a suitable pick. The fund just hit a 52-week high, up roughly 29.5% from its 52-week low of $24.71/share.

But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

EWRE in Focus

EWRE invests at least 90% of its assets in securities included in the S&P 500 Equal Weight Real Estate Index. EWRE is charging 40 bps in fees. The fund has amassed $49.5 million in AUM.

Why the Move?

The Federal Reserve has cut interest rate for the first time since 2008 at the FOMC meeting in July 2019. 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, escalating Sino-US trade war tensions, uncertainty in market conditions due to geo-political tensions, slowdown in the global economy and Brexit woes 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 trades keep yields at check.

More Gains Ahead?

Currently, EWRE has a Zacks Rank #3 (Hold) making it hard to get a handle on the fund’s future returns. However, it seems EWRE might remain strong given a positive weighted alpha of 15.70.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free>>


Click to get this free report

Invesco S&P 500 Equal Weight Real Estate ETF (EWRE): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ETFs

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More