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Building & Construction ETF (PKB) Hits New 52-Week High

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For investors looking for momentum, Invesco Dynamic Building & Construction ETF (PKB - Free Report) is probably a suitable pick. The fund just hit a 52-week high, up roughly 48.1% from its 52-week low of $22.31/share.

But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

PKB in Focus

The fund is based on the Dynamic Building & Construction Intellide Index (Intellidex Index). The Underlying Intellidex Index is comprised of securities of 30 U.S. building and construction companies. These are companies that are primarily engaged in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large-scale infrastructure projects, such as highways, tunnels, bridges, dams, power lines, and airports. PKB is charging 60 bps in fees. The fund has amassed $111.5 million in AUM (see all Real Estate ETFs).

Why the Move?

The Federal Reserve has cut interest rate for the second time at the FOMC meeting in September 2019. When interest rate drops, mortgage rates fall, making real estate or refinancing mortgages more affordable. This in turn results in higher real estate sales.

More Gains Ahead?

Currently, the fund has a Zacks Rank of 3 (Hold) with a High risk outlook. However, it seems that PKB might remain strong given a positive weighted alpha of 29.50 and a low risk as depicted by a 20-day volatility of 0.85%.

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