For investors seeking momentum, iShares Global REIT ETF (REET) is probably on radar now. The fund just hit a 52-week high, which is up roughly 17.2% from its 52-week low price of $22.73/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:
REET in Focus
The fund looks to track the FTSE EPRA/NAREIT Global REIT Index, which is designed to track the performance of publicly-listed real estate investment trusts in both developed and emerging markets. Simon Property Group (NYSE:SPG) (4.38%), Prologis (3.55%) and Public Storage (NYSE:PSA) (2.56%) are the top three holdings of the fund. United States (65%) is the top geographical allocation of the fund followed by Japan (7.8%) and Australia (5.8%). It charges 14 bps in fees (see all 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 kept the rates subdued and increased the lure for the rate-sensitive stocks. Additionally, still-unresolved U.S.-China trade war, global growth concerns and Brexit concerns are making global investors jittery, boosting the demand for safe-haven assets, raising the appeal for these stocks, which in turn lowers yields. Dovish central banks in most of the developed markets have also been helping the operating backdrop of the real estate market.
More Gains Ahead?
The fund has a positive weighted alpha of 8.80, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
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iShares Global REIT ETF (REET): ETF Research Reports
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Zacks Investment Research