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US REIT ETF (BBRE) Hits New 52-Week High

Sweta Jaiswal, FRM

For investors looking for momentum, JPMorgan BetaBuilders MSCI US REIT ETF BBRE is probably a suitable pick. The fund just hit a 52-week high, up roughly 29% from its 52-week low of $69.49/share.

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

BBRE in Focus

BBRE tracks the U.S. equity REIT market and invests at least 80% of its assets in securities included in the MSCI US REIT Index. BBRE is charging 11 bps in fees. The fund has amassed $639.5 million in AUM.

Why the Move?

The Federal Reserve has cut interest rate for the first time since 2008 at the FOMC meeting in July 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. Further, escalating Sino-US trade war tensions, uncertainty in market conditions due to geo-political tensions, slowdown in the global economy and Brexit woes are making investors jittery, adding to the lure of these funds. This is because these funds act as a safe haven in times of market turmoil, offering higher returns due to their outsized yields.

More Gains Ahead?

Currently, BBRE has a Zacks Rank #3 (Hold) making it hard to get a handle on the fund’s future returns. However, it seems that BBRE might remain strong given a positive weighted alpha of 15.04.

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JPMorgan BetaBuilders MSCI US REIT ETF (BBRE): ETF Research Reports
 
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