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ETF News And Commentary

Sanghamitra Saha

Industrial ETF (AIRR) Hits New 52-Week High

AIRR

Trades from $3

For investors seeking momentum, First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 62.2% from its 52-week low price of $13.77/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.

AIRR in Focus    

AIRR focuses on the industrial segment of the U.S. market. The fund has a small-cap focus. AIRR charges investors 70 basis points a year in fees and has top holdings in Tutor Perini, Granite Construction and TriMas Corp (see Industrial ETFs here).

Why the Move?

The industrial sector has been an area to watch lately. With Trump highly expected to bring U.S. manufacturing jobs back to the country and strictly oppose outsourcing, the industrial sector may have started cheering his win. 

It is widely believed that North America and Western Europe are high-cost nations and Latin America, Eastern Europe, and most of Asia — especially China — are low cost destinations. This divide is seen as the reason for the rise in manufacturing offshoring in recent times. But Trump’s win now may set the trend for manufacturing ‘reshoring’. This has probably pushed AIRR higher.

More Gains Ahead?

The fund has a Zacks Rank #2 (Buy). Further, the fund the fund has a positive weighted alpha of 38.50. A positive weighted alpha hints at more gains.

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