For investors seeking momentum, State Street Multi-Asset Real Return ETF RLY is probably on the radar now. The fund just hit a 52-week high and rose 26% from its 52-week low price of $30.08 per share.
But are there more gains in store for this ETF? Let us take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
RLY in Focus
The fund offers exposure to domestic and international inflation-protected securities, real estate securities, commodities, infrastructure companies, and companies involved in natural resources and/or commodity businesses. These may include agriculture, energy, metals and mining, industrial and utility companies. The fund charges 50 basis points (bps) in annual fees (See: all Total Portfolio ETFs here).
What Led to the Rise?
Designed to protect purchasing power, RLY benefits from rallies in underlying commodities, natural resource equities, real estate and inflation-linked bonds (TIPS). Persistent inflation concerns, easing monetary policy expectations, and elevated geopolitical risks have heightened demand for real assets, which might have pushed RLY’s diversified basket of commodity and infrastructure-focused holdings toward a new 52-week peak.
More Gains Ahead?
RLY may continue its strong performance in the near term, with a positive weighted alpha of 24.64 (per Barchart.com), which suggests a rally.
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This article originally published on Zacks Investment Research (zacks.com).