For investors seeking momentum, KBW Premium Yield Equity REIT Portfolio KBWY is probably on radar now. The fund just hit a 52-week high, which is up roughly 34.6% from its 52-week low price of $26.08/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.
KBWY in Focus
KBWY focuses on the REIT segment of the U.S. market. The fund has a smaller-cap focus with stocks having high dividend yield getting priority. KBWY charges investors 35 basis points a year in fees and has top holdings in WP Glimcher, CBL & Associates Properties and New Senior Investment Group (see all Real Estate ETFs here).
Why the Move?
The REIT sector has been an area to watch lately as the stock markets once again gave hints of instability which in turn kept Treasury bond yields low. Brexit and worries over slower U.S. job growth noted in the month of May also paved ways for a dovish Fed policy over the coming months.
Since the REIT sector is high-dividend paying in nature, the space has been a winner in recent times. The underlying fundamental for the area is quite strong. All these led income-starved investors to eye this high-yielding REIT ETF KBWY.
More Gains Ahead?
Currently, KBWY has a Zacks ETF Rank #2 (Buy) which hints at positive momentum ahead. Moreover, the fundhas a positive weighted alpha of 16.90. A positive weighted alpha hints at more gains.
PWRSH-K PY REIT (KBWY): ETF Research Reports
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