ETF Pick of the Month: Low Rates for Some, New 52-Week Highs for Others

ETFdb.com is recommending a new long position for the month ahead. This bullish recommendation is based around falling interest rates prompting investors to seek out meaningful sources of income. Below, we outline our investment thesis and outlook for the new recommendation. This position is motivated by momentum returning to a traditionally under-appreciated, income-generating asset class that has taken on fundamental appeal in light of today’s stubbornly low-rate environment. Furthermore, this ETF is nearing its all-time highs resistance level from the 2008 crash and it looks technically well-poised to break above it. The new long recommendation is based around: Real Estate ETF that is up 3.5% for the month, but has gained over 16% year-to-date amid the market wide rebound This ETF has seen solid inflows over the month to match its positive performance, totaling around $438M for the past four weeks and $995M year-to-date The fund is fairly well balanced for being sector-specific; it holds around 100 securities in total and the top ten position account for just over one-third of total assets under management In terms of exposure, this ETF is dominated by Large and Mid Cap size securities from the US