For investors seeking momentum, iShares Residential Real Estate ETF (REZ - Free Report) is probably on radar. The fund just hit a 52-week high, and is up roughly 22.3% from its 52-week low price of $53.83/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:
REZ in Focus
It offers exposure to the U.S. residential real estate sector with key holdings in residential REITs, health care REITs and specialized REITs. The ETF charges 48 bps in annual fees (see: all the Real Estate ETFs here).
Why the Move?
The real estate corner of the broad market has been an area to watch lately given the declining yields that have brought the lure back for the rate-sensitive stocks. Additionally, the economy is booming with strong job growth and higher consumer spending, thereby brightening the prospect of the real estate sector. This is because growth in the economy translates into greater demand for real estate, higher occupancy levels and landlords’ greater power to ask for higher rents.
More Gains Ahead?
Currently, REZ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>