For investors looking for momentum, Invesco KBW Premium Yield Equity REIT ETF (KBWY Quick QuoteKBWY - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 23% from its 52-week low price of $20.20/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

KBWY in Focus

The Invesco KBW Premium Yield Equity REIT ETF is based on the KBW Nasdaq Premium Yield Equity REIT Index. KBWY generally will invest at least 90% of its total assets in the securities of small- and mid-cap equity REITs that have competitive dividend yields and are publicly traded in the United States that comprise the Index. It has AUM of $322 million and charges an expense ratio of 35 basis points, as stated in the prospectus.

Why the Move?

The Omicron variant has stolen some year-end rally thunder. Weakness is being observed on the bourses as there is still a lot of ambiguity about the severity of the new strain and the efficacy of the existing vaccines. Various measures are being taken to curtail the spread, again impacting the economic recovery achieved so far from the pandemic-led slump. These factors 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 trade keeps yields in check.

Moreover, real estate or REIT stocks act as a good bet in a rising inflation environment. Both the property's resale value and rental income increase with price inflation.  This is making funds like KBWY an impressive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 18.49, which gives cues of a further rally.