From Sweta Killa: For investors seeking momentum, Vanguard REIT Index ETF VNQ is probably on radar now. The fund just hit a 52-week high, and is up 17.9% from its 52-week low price of $71.08 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 offers exposure to the real estate investment trusts (REITs) that purchase office buildings, hotels, and other real property. It has key holdings in specialized REITs, retail REITs, and residential REITs that accounts for double-digit exposure each. 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 Fed’s dovish stance that has returned the lure for the rate-sensitive stocks. Additionally, still-unresolved U.S.-China trade war, global growth concerns, geopolitical tensions and Brexit concerns are making investors jittery, raising the appeal for these stocks. 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.
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.
The Vanguard Real Estate ETF (VNQ) was trading at $84.32 per share on Thursday afternoon, up $0.07 (+0.08%). Year-to-date, VNQ has gained 2.60%, versus a 3.20% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Yahoo Finance.