For investors seeking momentum, Schwab U.S. REIT ETF (SCHH - Free Report) is probably on the radar now. The fund just hit a 52-week high, which is up roughly 21.6% from its 52-week low price of $36.73/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.
SCHH in Focus
The fund tracks the price and yield performance of the Dow Jones U.S. Select REIT Index. The fund has Simon Property Group, Prologis and Public Storage as its top three holdings. It charges 7 basis points (bps) in fees (see all Real Estate ETFs here).
Why the Move?
Dovish Fed comments have kept long-term U.S. Treasury bond yields at a subdued level this year. The central bank even cut U.S. economic growth forecasts for 2019 and 2020, following which the yield curve inverted at the end of March, triggering recession fears.The benchmark U.S. treasury yield was 2.39% on Mar 28, down 37 bps from the start of the month. This has boosted rate-sensitive sectors like real estate.
More Gains Ahead?
The fund has a Zacks Rank #3 (Hold). Also, it has a positive weighted alpha of 17.10, which hints at more gains. So, there is definitely still some promise for those who want to ride this surging ETF a little longer.
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