Real Estate ETF (VNQ) Hits New 52-Week High
For investors seeking momentum, Vanguard Real Estate ETF VNQ is probably on radar. The fund just hit a 52-week high, and is up 33% from its 52-week low price of $75.46 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:
VNQ in Focus
This product seeks to provide exposure to the publicly traded equity REITs and other real estate-related investments. It has key holdings in specialized REITs, residential REITs and industrial REITs. It charges investors 12 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 given the market volatility that has returned the lure for rate-sensitive sectors. 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. Additionally, rising rents due to shortage of homes are driving the sector higher.
More Gains Ahead?
Currently, VNQ has a Zacks ETF Rank #3 (Hold) with a Medium 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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VANGUARD REIT (VNQ): ETF Research Reports
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