We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
iShares U.S. Real Estate ETF (IYR) Hits a New 52-Week High
Read MoreHide Full Article
For investors looking for momentum, iShares U.S. Real Estate ETF (IYR - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 39.9% from its 52-week low price of $76.33/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
IYR in Focus
The fund provides exposure to U.S. real estate companies and REITs, which invest in real estate directly and trade like stocks. It has AUM of $5.58 billion and charges 42 basis points in annual fees.
Why the Move?
Per the latest FOMC minutes, the central bank will patiently wait to attain the “substantial further progress” benchmark before tightening the policy, as stated in a CNBC article. When interest rate drops, mortgage rates fall, making real estate or refinancing mortgages more affordable. This in turn results in higher real estate sales. Further, uncertainty in market conditions due to the resurging coronavirus outbreak and slowdown in the global economy are making investors jittery, adding to the lure of these funds. This is because these funds offer outsized yields and act as good investing options when increased safe-haven trade keeps yields at check.
Image: Bigstock
iShares U.S. Real Estate ETF (IYR) Hits a New 52-Week High
For investors looking for momentum, iShares U.S. Real Estate ETF (IYR - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 39.9% from its 52-week low price of $76.33/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
IYR in Focus
The fund provides exposure to U.S. real estate companies and REITs, which invest in real estate directly and trade like stocks. It has AUM of $5.58 billion and charges 42 basis points in annual fees.
Why the Move?
Per the latest FOMC minutes, the central bank will patiently wait to attain the “substantial further progress” benchmark before tightening the policy, as stated in a CNBC article. When interest rate drops, mortgage rates fall, making real estate or refinancing mortgages more affordable. This in turn results in higher real estate sales. Further, uncertainty in market conditions due to the resurging coronavirus outbreak and slowdown in the global economy are making investors jittery, adding to the lure of these funds. This is because these funds offer outsized yields and act as good investing options when increased safe-haven trade keeps yields at check.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 37.61, which gives cues of further rally.