For investors looking for momentum, iShares Residential Real Estate ETF (REZ Quick QuoteREZ - Free Report) is probably a suitable pick. The fund just hit a 52-week high, up roughly 35.8% from its 52-week low of $59.66/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:

FTXG in Focus

The underlying FTSE NAREIT All Residential Capped Index measures the performance of the residential, healthcare and self-storage real estate sectors of the U.S. equity market. The product charges 48 bps in fees.

Why the Move?

The Fed has enacted two rate cuts so far this year and is likely to enact one more in the upcoming October meeting. Probability of an October Fed rate cut rose following subdued manufacturing data. A low-rate environment is great for real estate stocks as lower mortgage rates boost home buying.

More Gains Ahead?

The fund has a Zacks ETF Rank #3 (Hold). It seems REZ might perform decently given a positive weighted alpha of 33.10.

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