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For investors seeking momentum, iShares U.S. Real Estate ETF IYR is probably on radar. The fund just hit a 52-week high, and is up 24% from its 52-week low price of $75.34 per 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:
IYR in Focus
This product seeks to offer exposure to U.S. real estate companies and REITs, which invest in real estate directly and trade like stocks. It has key holdings in specialized REITs, residential REITs and industrial REITs with double-digit exposure each. The ETF charges investors 42 basis points a year in 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 amid bouts of volatility. Inflationary pressures and the resurgence of COVID-19 infections in Asia has raised the appeal for the stocks in the real estate sector. This is especially true as these often act as a safe haven in times of market turbulence and concurrently offer higher returns due to their outsized yields. On the other hand, accelerating economic growth backed by rapid COVID-19 vaccinations and huge stimulus has brightened the prospect of the real estate sector. This is because growth in the economy translates into greater demand for real estate, higher occupancy levels and landlords’ greater power to ask for higher rents.
More Gains Ahead?
Currently, IYR has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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ISHARS-US REAL (IYR): ETF Research Reports
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