For investors seeking momentum, Proshares Short Real Estate ETF (REK - Free Report) is probably on radar now. The fund just hit a 52-week high and is up around 13.5% from its 52-week low price of $15.62/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:
REK in Focus
The fund looks to track the inverse (opposite) of the daily performance of the Dow Jones U.S. Real Estate Index. It charges 95 basis points in annual fees (see all Inverse Equity ETFs here).
Why the Move?
Rising rate worries are prevalent globally. As of Feb 6, 2018, the yield on benchmark U.S. Treasuries was 2.79%, up from 2.46% noted at the start of the year. Since real estate companies underperform in a rising rate environment, this inverse ETF hit highs.
More Gains Ahead?
Currently, REK has a positive weighted alpha of 4.50. Since positive weighted alpha hints at more gains, we can expect outperformance in the near term.
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