US Financials Ishares ETF IYF is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 30.49% from its 52-week low price of $92.83/share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
IYF in Focus
The Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index measures the performance of the financial sector of the U.S. equity market. The product charges 39 bps in annual fees (see: all Financials ETFs).
Why the Move?
The financial sector has been an area to watch lately, given the likelihood of the Fed cutting interest rates, along with signs of regulatory easing. The Fed may be on track to ease interest rates sooner than expected, potentially lowering the capital costs for banks.
U.S. regulators have proposed major rollbacks of bank capital rules since the 2008 financial crisis. The proposal targets the enhanced supplementary leverage ratio (eSLR), which requires the largest U.S. banks to hold additional capital, based solely on their size. The proposed change is expected to have a broadly positive impact on major U.S. lenders.
More Gains Ahead?
Currently, IYF has a Zacks ETF Rank #2 (Buy) and a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 25.46 (as per Barchart.com), which gives cues of a further rally.
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iShares U.S. Financials ETF (IYF): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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