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Global Real Estate ETF (RWO) Hits New 52-Week High

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For investors seeking momentum, SPDR Dow Jones Global Real Estate ETF (RWO - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up over 59.6% from its 52-week low price of $32.28 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:

RWO in Focus    

RWO focuses on the real estate segment of the developed and emerging markets. RWO charges investors 50 basis points a year in fees and has top holdings in Simon Property Group, Public Storage and Welltower Inc. (see all Real Estate ETFs here).

Why the Move?

As long-term U.S. Treasury yields are toying with record-low levels and super-easy monetary policies are bringing down the yields in most developed markets, this could be the right time to play a global real estate ETF.

Investors should note that real-estate ETFs are rate-sensitive and perform well in a low-rate environment. The ETFs are high-yield in nature, thus mitigating investors’ need for higher income. As a result, decent yields over 3% offered by this fund attract investors to this product.

More Gains Ahead?

It seems that this fund will see strong trading given a positive weighted alpha of 12.93. Since a positive weighted alpha hints at more gains, there is still some promise for investors who want to ride this surging ETF a little further.

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