For investors seeking momentum, Invesco Active U.S. Real Estate ETF (PSR - Free Report) is probably on radar. The fund just hit a 52-week high and is up roughly 30% from its 52-week low price of $73.28/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:
PSR in Focus
It targets the real estate sector of the broad U.S. equity market, and structures and selects its investments primarily from a universe of securities that are included within the FTSE NAREIT All Equity REITs Index at the time of purchase. The ETF charges 35 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 Fed’s second rate cut this year that raised the appeal for the rate-sensitive stocks. Additionally, the still-unresolved U.S.-China trade war, global growth concerns, geopolitical tensions and Brexit concerns continued to fuel growth in the sector. This is because these often act as a safe haven in times of market turbulence and concurrently offer higher returns due to their outsized yields.
More Gains Ahead?
It seems that PSR might remain strong given a higher weighted alpha of 18.70 and a low risk as depicted by the 20-day volatility of 11.33%. As a result, there is definitely still some promise for investors, who want to ride on this surging ETF a little further.
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