For investors looking for momentum, FlexShares Global Quality Real Estate Index Fund (GQRE - Free Report) is probably a suitable pick. The fund just hit a 52-week high — up roughly 23.5% from its 52-week low of $53.62/share.
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:
GQRE in Focus
The underlying Northern Trust Global Quality Real Estate Index is designed to maximize exposure to quality, value and momentum factors, within a universe of companies operating in the real estate sector. The fund has about 60% exposure to the United States, followed by Japan (8.45%), Hong Kong (7.51%) and Australia (4.15%). It charges 45 bps in fees (see all Real Estate ETFs here).
Why the Move?
Amid global growth concerns sparked by unceasing trade tensions, a rate cut cycle is in motion for many economies. The Fed and the Reserve Bank of Australia have cut rates this year. The Bank of Japan has been practicing negative rates for long. Two-thirds of economists also expect see Japan as easing further in October. All these low rates are good for real estate stocks as these are rate-sensitive sectors and perform well in a low-rate environment. The fund yields 2.73% annually.
More Gains Ahead?
The fund has a positive weighted alpha of 13.17, which gives cues of further rally.
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