iShares U.S. Real Estate ETF (ARCA:IYR), Quote.Headers.trade-ideas

iShares U.S. Real Estate ETF

Real Estate

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The Fund seeks to track the investment results of the Dow Jones U.S. Real Estate Capped Index; the Underlying Index, which measures the performance of the real estate sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC; the Index Provider or SPDJI.

Prologis Inc.

American Tower Corp.

Equinix Inc

Welltower Inc. Real Estate Investment Trust

Simon Property Group Inc

Realty Income Corp.

Digital Realty Trust Inc.

Crown Castle International

Public Storage

CBRE group

iShares US Real Estate ETF

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Small Cap Analysis

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iShares Trust Dow Jones US Real Estate Fund Index

PSCD

IWFN

The Federal Reserve is cutting interest rates, and small-cap sectors like financials, real estate, consumer discretionary, and energy could benefit. ETFs like IWFN, VNQ, PSCD, and XOP offer exposure to these sectors.

Small-Cap Sectors Brace For Fed Rate Cut: Financials, Real Estate ETFs Offer Compelling Plays For Investors

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Long Ideas

Markets

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iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

Baruch chooses Micron as bad news is out. Morgan Stanley lowers price target to $100. Micron announces new SSD for gaming, PS5. NB Wealth picks IYR, Ritholtz picks IEO for final trades.

Micron Technology, Real Estate And Energy ETFs On CNBC&#39;s &#39;Final Trades&#39;

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iShares FTSE NAREIT Residential PLUS Capped Index Fund

XLRE

Investors are optimistic about real estate sector as Fed prepares for rate cuts. $2.2B inflow in August to REITs. IYR, VNQ, XLRE, RWR, REZ top performing ETFs.

Investors Funnel $2.2B Into These 5 Real Estate ETFs In Anticipation Of Fed Rate Cuts

The Federal Reserve is set to sprinkle some interest rate fairy dust, and small-cap sectors are lining up to see who'll soar or stumble. While the Russell 2000 is stealing the spotlight with its 5% surge ahead of the rate cut, not all small caps will feel the same love from <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">lower borrowing costs</a>. 
So, what sectors should investors be eyeing, and where do the best ETFs come into play?
<h2 class="wp-block-heading">Financials: Money Talks, But Who's Listening?</h2>
Small-cap financials, often living and breathing on rate-sensitive margins, are gearing up for a potential win. 
As borrowing costs fall, these lenders, insurers, and regional banks get a shot in the arm. For those looking to ride the wave, the iShares Russell 2000 Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWFN#NYSE">IWFN</a>) offers concentrated exposure to this potentially booming sector.
<h2 class="wp-block-heading">Real Estate: Open House For Gains?</h2>
Real estate stocks also stand to benefit as mortgage rates and financing costs drop. With rate cuts loosening the borrowing purse strings, real estate could experience a boost in demand and valuation. 
Investors eyeing the space might find the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) or iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>) perfect for capturing the sector's expected rise.
Don&#8217;t miss out on this unparalleled opportunity:
<ul>
<li><a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Register now to secure your spot at Benzinga&#8217;s Largest SmallCap Conference ever in Chicago!</a></li>
</ul>
<h2 class="wp-block-heading">Consumer Discretionary: Retail Therapy Ahead?</h2>
Lower interest rates also often mean more cash for consumers to splurge on non-essentials, giving a lift to small-cap retail, travel, and leisure names.
The SPDR S&amp;P 600 Small Cap Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NYSE">PSCD</a>) is one way to jump on this sector's shopping spree.
<h2 class="wp-block-heading">Energy: A Wildcard In The Small-Cap Mix</h2>
Energy stocks are notorious for being tied to oil prices, but lower rates can still offer some breathing room for these debt-heavy companies. 
For those ready to hedge their bets, the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) could be the small-cap energy ETF to watch.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40749609/this-small-cap-top-pick-is-positioned-for-strong-gains-jpmorgan-sees-over-50-upside">This Small Cap &#8216;Top Pick&#8217; Is Positioned For Strong Gains, JPMorgan Sees Over 50% Upside</a>
<h2 class="wp-block-heading">Technology, Healthcare: Resilient But&#8230; Rate-Resistant?</h2>
While technology and healthcare sectors aren't as rate-sensitive as financials or real estate, they remain staples in small-cap ETFs like the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) and Vanguard Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>). 
Both funds are solid all-around plays for investors who want diversified exposure to the small-cap space, especially as uncertainty lingers.
As the Fed moves its rate-cutting wand, small-cap sectors will each feel the ripples differently. 
Whether you're banking on financials, betting on real estate, or shopping for consumer discretionary, there's a sector—and ETF—for every investor's playbook.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/09/40777734/exclusive-small-caps-at-most-attractive-relative-valuations-since-1990s-says-russell-inv" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Small Caps At &#8216;Most Attractive Relative Valuations&#8217; Since 1990s, Says Russell Investments&#8217; Paul Eitelman</a></li>
</ul>
Don&#8217;t miss the opportunity to dominate in a volatile market at the&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>,&nbsp;at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today!</a>
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On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/09/17/final-trades-micron-the-ieo-and-the-iyr.html">Halftime Report Final Trades</a>,&#8221; Bill Baruch of Blue Line Capital named Micron Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), saying all the <a href="https://www.benzinga.com/quote/MU/analyst-ratings">bad news is fleshed out</a>.
On Sept. 16, Morgan Stanley analyst Joseph Moore maintained Micron Technology with an Equal-Weight rating and lowered the price target from $140 to $100.
Micron on Tuesday announced the availability of the Crucial P310 2280 Gen4 NVMe solid-state drive (SSD) which expands Micron's P310 portfolio to address PCs, laptops and PlayStation 5. The company said a version with a heatsink will be released in the coming months, suited for use with PlayStation 5 and desktop gaming PCs.
"Micron's Crucial P310 2280 SSD delivers blazing fast gaming-level speeds, allowing users to do it all faster — from gaming to booting Windows to running multiple creative apps at the same time — without compromising on quality," said Jonathan Weech, senior director of product marketing for <a href="https://www.benzinga.com/news/24/09/40903705/whats-going-on-with-microns-stock">Micron's Commercial Products Group</a>.
Shannon Saccocia of NB Private Wealth picked iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>), saying rates are coming down.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Josh Brown of Ritholtz Wealth Management named iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEO#NYSE">IEO</a>) as his final trade. The S&amp;P Energy sector is trading at 10 times forward earnings and one times sales.
Price Action:
<ul>
<li>Micron gained 1.8% to close at $88.73 during Tuesday's session.</li>
<li>iShares U.S. Real Estate ETF fell 0.8% on Tuesday.</li>
<li>iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF gained 1.8% during Tuesday's session.</li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/24/09/40898216/cramer-hewlett-packard-is-a-very-inexpensive-stock-likes-this-big-tech-stock">Cramer: Hewlett Packard Is A &#8216;Very Inexpensive&#8217; Stock, Likes This Big Tech Stock</a></li>
</ul>
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Micron Technology, Real Estate And Energy ETFs On CNBC's 'Final Trades'

Analyst Ratings

CNBC Halftime Report Final Trades: Micron Technology, iShares U.S. Oil & Gas Exploration & Production ETF, iShares U.S. Real Estate ETF

Investors are increasingly eyeing the real estate sector with optimism as the Federal Reserve edges closer to initiating its <a href="https://www.benzinga.com/topic/interest-rates">much-anticipated rate-cut cycle.</a>
Real Estate Investment Trusts (REITs) have emerged as a standout performer in August, leading the market in gains while also becoming a magnet for investor inflows.
Five out of the 64 U.S.-listed real estate exchange-traded funds (ETFs) have collectively pulled in a robust $2.2 billion in net inflows over the past month. 
This influx of capital represents more than half of the total inflows that these ETFs have attracted over the entire past year, as market participants increasingly bet on the real estate sector to benefit from lower borrowing costs and more favorable financial conditions ahead of the potential Fed rate cut in September. 
Fed Chair Jerome Powell, in his remarks at the Jackson Hole Symposium, signaled that the Federal Reserve might consider lowering interest rates soon due to a noticeable cooling in the labor market. 
"The time has come for policy to adjust," he said, adding that &#8220;the cooling in labor market conditions is unmistakable.&#8221;
The Fed chair also expressed increased confidence that the economy is on a sustainable path toward the 2% inflation target. 
<h3 class="wp-block-heading">5 Real Estate ETFs Attract Inflows As Investors Jump On Rate-Cut Winners</h3>
The iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>) led the inflows, attracting $805.6 million in net investments over the past month—a sum that represents two-thirds of the fund's total inflows for the past year. 
The Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) –&nbsp;the largest real estate ETF with $37 billion in assets under management – saw a strong recovery in August, pulling in $613.6 million and nearly offsetting its earlier outflows, bringing its yearly inflows close to breakeven. 
The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) also experienced robust activity, with $498.6 million in net inflows over the last month. 
Other notable performers included the SPDR DJ Wilshire REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWR#NYSE">RWR</a>) and the iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>), which attracted $146.7 million and $136.8 million, respectively, during August.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>1-Month Fund Flows ($mln)</th>
<th>1-Year Fund Flows ($mln)</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares U.S. Real Estate ETF </td>
<td>805.6</td>
<td>1,193</td>
</tr>
<tr>
<td>Vanguard Real Estate ETF</td>
<td>613.6</td>
<td>-2.8</td>
</tr>
<tr>
<td>Real Estate Select Sector SPDR Fund </td>
<td>498.6</td>
<td>2,063</td>
</tr>
<tr>
<td>SPDR DJ Wilshire REIT ETF </td>
<td>146.7</td>
<td>132.8</td>
</tr>
<tr>
<td>iShares Residential and Multisector Real Estate ETF</td>
<td>136.8</td>
<td>95.9</td>
</tr>
<tr>
<td>Total</td>
<td>2,201.3</td>
<td>3,481.9</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: TradingView, as of Aug. 27, 2024</figcaption></figure>
<h3 class="wp-block-heading">Why Real Estate Sector Benefits From Interest Rate Cuts</h3>
Lower household borrowing costs and improved refinancing opportunities, fueled by expectations of declining interest rates, can significantly boost the profitability of real estate companies.
Real estate stocks, as represented by the VNQ ETF, have climbed 35% since their October 2023 lows, with a striking 14% gain in just the last two months, far outpacing the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&#8217;s modest 3% rise over the same period. 
This robust outperformance in real estate stocks aligns closely with growing market expectations for impending interest rate cuts.
As illustrated in the chart below, the largest real estate ETF has moved inversely to the 2-year Treasury yield, a crucial indicator of market expectations for short-term interest rates.
<h3 class="wp-block-heading">Chart: Declining 2-Year Yields Fuel Rally In Real Estate Stocks</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="508" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27121530/image-270-1024x508.png" alt="" class="wp-image-516548" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27121530/image-270-1024x508.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27121530/image-270-300x149.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27121530/image-270-768x381.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27121530/image-270-1536x762.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27121530/image-270.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/08/40581306/can-regional-banks-outperform-large-institutions-as-fed-rate-cuts-loom-small-banks-are-plenty-ch">Can Regional Banks Outperform Large Institutions As Fed Rate Cuts Loom? &#8216;Small Banks Are Plenty Cheap,&#8217; But&#8230;</a></li>
</ul>
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On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/08/22/final-trades-amazon-target-jpmorgan-and-the-iyr.html">Halftime Report Final Trades</a>,&#8221; Jason Snipe of Odyssey Capital Advisors said he likes Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), with <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38541875/amazons-advertising-business-is-going-to-grow-significant-scale-says-mark-douglas-a">advertising growing nicely</a>.
The remarks echo what MNTN CEO Mark Douglas said about Amazon's growing focus on performance advertising during <a href="https://www.cnbc.com/video/2024/04/30/amazons-ad-business-is-going-to-grow-significant-scale-and-be-very-profitable-mntn-ceo-mark-douglas.html" target="_blank" rel="noreferrer noopener">CNBC'</a>s "Last Call" on April 30. 
Also, Amazon.com's Amazon Web Services (AWS) just announced <a href="https://www.benzinga.com/markets/equities/24/08/40507491/amazon-web-services-commits-over-6b-to-malaysia-with-new-cloud-region">plans to invest $6.2 billion</a> (about MYR 29.2 billion) in Malaysia through 2038. The new AWS Region in Malaysia is expected to contribute around $12.1 billion (MYR 57.3 billion) to the country's GDP and support over 3,500 full-time equivalent jobs annually through 2038.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Anastasia Amoroso of iCapital named iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>), saying commercial real estate has done really well in the recent period, but is down 16% from its all-time highs. &#8220;The turnout is <a href="https://www.benzinga.com/quote/IYR">starting now,&#8221; she added.</a>
Stephanie Link of Hightower said Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) is on the road to recovery in product and pricing.
On Aug. 21, Target reported better-than-expected second-quarter financial results and raised FY24 EPS outlook. Quarterly adjusted earnings per share totaled $2.57 (+40%), beating the street view of $2.20. Target reported sales of $25.45 billion (+2.7%), exceeding the analyst consensus of $25.229 billion.
Joshua Brown of Ritholtz Wealth Management picked JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>).
On Aug. 9, JPMorgan provided an artificial intelligence assistant to more than 60,000 employees, with plans to eventually make the technology available throughout the company. The program, called LLM Suite, is designed to help employees with tasks such as writing emails and reports, CNBC reported.
Price Action:
<ul>
<li>iShares U.S. Real Estate ETF gained 0.4% during Thursday's session.</li>
<li>Target shares fell 1.5% to close at $156.82 during Thursday's session.</li>
<li>Amazon fell 2.2% to settle at $176.13 on Thursday.</li>
<li>JPMorgan shares 1% to close at $216.63.</li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/08/40521881/nasdaq-s-p-500-close-lower-as-investors-await-jerome-powells-jackson-hole-address-fear-greed-index-">Nasdaq, S&amp;P 500 Close Lower As Investors Await Jerome Powell&#8217;s Jackson Hole Address: Fear &amp; Greed Index Stays In &#8216;Neutral&#8217; Zone</a></li>
</ul>

AMZN

Amazon, Target, JPMorgan And More: CNBC's 'Final Trades'

CNBC Halftime Report Final Trades: Amzon.com, Target, JP Morgan Chase & Co., iShares U.S. Real Estate ETF

Wall Street is currently witnessing the &quot;Great Rotation&quot; with investors shunning hot technology stocks in favor of smaller companies and other sectors. The combination of the Trump trade resurgence and the growing expectations of the Fed cutting rates in September has led to the rotation in the market.
The Dow Jones Industrial Average, which was underperforming, has gained 2.3% over the past week, outperforming the S&amp;P 500 and the Nasdaq Composite Index, which shed nearly 0.7% and 2.2%, respectively. The Russell 2000 small-cap index has risen 3.4% in a week. Value investing is also being favored by investors as it involves buying stocks or other financial assets that are believed to be undervalued or trading below their intrinsic worth.
Chances of Donald Trump winning in November have risen steadily in recent weeks. Trump favors higher tariffs, particularly on imports from China, that could potentially hurt semiconductor stocks. Technology names, which powered the bull market this year, have lost their sheen lately.
Trump prefers more deregulation, which will benefit the health insurance, energy and financial industries as well as small-cap companies. Proposed extensions of corporate and personal tax cuts could increase budget deficits and result in higher government borrowing. Consequently, longer-dated bond yields have surged lately, steepening the yield curve.
Inflation in the United States cooled in June to the slowest pace since 2021, spiking the bets for rate cuts as soon as possible. Fed Chairman Jerome Powell&#39;s latest comment that the Fed wouldn&#39;t wait for inflation to get to its 2% target before it began cutting rates also lent support to the rate cut bets. According to the CME FedWatch tool, traders now see a 100% chance of the Fed lowering rates in September.
Pint-sized companies have a higher level of debt, and lower rates generally lead to reduced borrowing costs. This helps small businesses to expand their operations more easily and results in increased profitability. A rate cut after two years of tightening would be a big relief for banks, which have been struggling with the impact of high rates on their profits and their borrowers. While lower rates can compress net interest margins for banks, it will encourage lending and potentially lead to increased consumer and business loan activity.
High-dividend-yield sectors such as utilities and real estate will be the biggest beneficiaries of rate cuts, given their sensitivity to interest rates. This is especially true as these offer higher returns due to their outsized yields. In real estate, lower rates can boost housing market activity by making mortgages more affordable.
Given the great rotation, some ETFs, which were depressed this year, have started to gain momentum and hit new 52-week highs in the latest trading session. We have highlighted them in detail below:
Invesco S&amp;P SmallCap 600 Pure Value ETF (ARCA:RZV) &ndash; 52-Week High: $110.00
Invesco S&amp;P SmallCap 600 Pure Value ETF offers exposure to the stocks of companies that exhibit strong value characteristics by tracking the S&amp;P SmallCap 600 Pure Value Index. It holds 143 stocks in its basket, with key holdings in financials, consumer discretionary and industrials sectors.
Invesco S&amp;P SmallCap 600 Pure Value ETF has AUM of $254.6 million and trades in an average daily volume of 12,000 shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #3 (Hold).
Financial Select Sector SPDR Fund (ARCA:XLF) &ndash; 52-Week High: $44.11
Financial Select Sector SPDR Fund ETF seeks to provide exposure to 71 companies in diversified financial services, insurance, banks, capital markets, mortgage real estate investment trusts, consumer finance, and thrifts and mortgage finance industries. It follows the Financial Select Sector Index, charging investors 9 bps in fees per year.
Financial Select Sector SPDR Fund is an ultra-popular ETF with AUM of $43 billion and trades in an average daily volume of 34 million shares. It carries a Zacks ETF Rank #1 (Strong Buy).
iShares U.S. Home Construction ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/itb#BATS">ITB</a>) &ndash; 52-Week High: $118.66
iShares U.S. Home Construction ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index.
With an AUM of $2.8 billion, iShares U.S. Home Construction ETF holds a basket of 44 stocks, with a heavy concentration on the top two firms. The product charges 40 bps in annual fees and trades in a heavy volume of around 2 million shares a day, on average. iShares U.S. Home Construction ETF has a Zacks ETF Rank #3.
iShares U.S. Real Estate ETF (ARCA:IYR) &ndash; 52-Week High: $94.88
iShares U.S. Real Estate ETF offers exposure to the country&#39;s real estate companies and REITs, which invest in real estate directly and trade like stocks. It follows the Dow Jones U.S. Real Estate Capped Index. iShares U.S. Real Estate ETF holds a basket of 71 securities with key holdings in telecom tower REITs, industrial REITs and retail REITs. It has amassed $3.4 billion in its asset base while trading in a heavy volume of 4.2 million shares a day on average.
iShares U.S. Real Estate ETF charges 40 bps in annual fees and has a Zacks ETF Rank #3.
Vanguard Mega Cap Value ETF (ARCA:MGV) &ndash; 52-Week High: $124.31
Vanguard Mega Cap Value ETF follows the CRSP US Mega Cap Value Index, which measures the performance of the largest value stocks in the U.S. market. It holds 134 stocks in its basket, with key holdings in financials, healthcare, industrials and technology sectors.
Vanguard Mid-Cap Value ETF has amassed $8 billion and trades in an average daily volume of 170,000 shares. It charges 7 bps in fees per year and has a Zacks ETF Rank #1 with a Medium risk outlook.
<a href="https://www.zacks.com/stock/news/2305429/5-etfs-making-the-most-of-the-great-market-rotation?cid=CS-BENZ-FT-etf_news_and_commentary-2305429">To read this article on Zacks.com click here.</a>

Events

iShares Dow Jones US Homenstruction Index Fund

Rydex ETF Trust S&P Smallcap 600 Pure Value ETF

5 ETFs Making the Most of the Great Market Rotation

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/07/18/final-trades-caterpillar-i-shares-u-s-real-estate-etf-and-the-carlyle-group-inc.html">Halftime Report Final Trades</a>,&#8221; Kevin Simpson of Capital Wealth Planning said profits, net margins of Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) are at <a href="https://www.benzinga.com/news/24/06/39297479/whats-going-on-with-caterpillar-shares-wednesday">all-time highs</a>.
On June 12, Caterpillar raised its dividend and increased its share repurchase program. The Board of Directors voted to increase the quarterly dividend by 11 cents, an 8% rise to $1.41 per share, payable on August 20 2024, to shareholders of record as of July 22, 2024. Additionally, Caterpillar added $20 billion to its current share repurchase authorization, allowing for up to $21.8 billion in stock buybacks.
Shannon Saccocia of NB Private Wealth named iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>) as her final trade.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Joshua Brown of Ritholtz Wealth Management picked The Carlyle Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CG#NASDAQ">CG</a>) as his final trade.
On July 10, UBS analyst Brent Dilts maintained Carlyle Group with a Neutral rating and lowered the price target from $45 to $44.
Carlyle Secured Lending is scheduled to host a conference call on Monday, Aug. 5, to announce its financial results for the second quarter ended June 30, 2024.
Price Action:
<ul>
<li>Caterpillar shares fell 0.5% to close at $356.03 on Thursday.</li>
<li>iShares U.S. Real Estate ETF slipped 0.8% during Thursday's session.</li>
<li>Carlyle Group shares gained 2.2% to close at $46.46 on Thursday.</li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/07/39853970/dow-plunges-over-500-points-following-unexpected-surge-in-us-jobless-claims">Dow Plunges Over 500 Points Following Unexpected Surge In US Jobless Claims</a></li>
</ul>
Photo: Shutterstock

Caterpillar, Carlyle Group And More: CNBC's 'Final Trades'

CNBC Halftime Report Final Trades: Caterpillar, The Carlyle Group, IShares U.S. Real Estate ETF

The delinquency rate for U.S. office loans rose in June as vacancies grew due to the post-pandemic work-from-home trend and persistently high interest rates, according to a <a href="https://www.fitchratings.com/research/structured-finance/us-cmbs-delinquency-rate-ticks-higher-in-june-office-delinquencies-rise-further-12-07-2024">report </a>from Fitch Ratings.
The rate of delinquencies, or late payments, on loans behind commercial mortgage-backed securities (CMBS) rose to 2.45% in June from 2.42% in May, according to the report released on Friday. The volume of 30-day delinquencies increased to $1.92 billion from $1.86 billion over the same period.
The volume of 30-day delinquencies increased to $1.92 billion in June from $1.86 billion in May, increasing the 30-day delinquency rate to 0.35% in June from 0.34% in May. Office loans represented the largest share, accounting for 55% of 30-day delinquencies and totaling $1.05 billion, the report said.
Also Read: <a href="https://www.benzinga.com/real-estate/23/09/34368502/times-up-office-loans-its-payback-season">Time&#8217;s Up, Office Loans: It&#8217;s Payback Season</a>
The volume of loans that are at least 60 days delinquent reached $1.35 billion in June, up from $1.32 billion in May. Office loans accounted for $51%, or $692 million, of these new delinquencies, while retail made up 16%, or $214 million, and hotel represented 12%, or $162 million, of the delinquencies.
Three of the largest five new delinquencies were office loans, which accounted for 37% of total delinquency volume and 72% of office delinquencies, the report said.
The Illinois Center, secured by two adjoining 32-story office towers totaling 2.09 million square feet in the East Loop submarket of Chicago&#8217;s central business district, became 60 days delinquent on a $244 million loan in June 2024. 
The 1615 L Street loan of $134 million, secured by a 417,383-square-foot office building in downtown Washington D.C., was reported as a non-performing matured balloon loan in June 2024 that has been chronically delinquent after defaulting at its September 2023 maturity. 
The Zappettini Portfolio loan, valued at $120 million and secured by a portfolio of 10 office buildings in Mountain View, California, defaulted at maturity in June 2024, according to the report.
Price Action: Major commercial real estate lenders showed mixed performances on Friday.
CBRE Group, Inc. (NYSE: CBRE) gained 1.65% to close at $94.66, while Walker &amp; Dunlop (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WD#NYSE">WD</a>) declined 0.47% to end the day at $99.68 and Cushman &amp; Wakefield plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CWK#NYSE">CWK</a>) jumped 1.61% to $11.99.
Three exchange-traded funds that hold the most CBRE stock made modest gains on Friday. Invesco S&amp;P 500 Equal Weight Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPR#NYSE">RSPR</a>) gained 1.05%, while the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) gained 0.73% and the iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>) edged up 0.84%.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/real-estate/23/11/35781692/loans-loom-large-u-s-office-building-owners-teeter-on-edge-of-default">Loans Loom Large: U.S. Office Building Owners Teeter On Edge Of Default</a></li>
</ul>
Photo: Shutterstock

CBRE

RSPR

Office Delinquencies Rise As Working From Home and Higher Rates Factor In

Jim Lebenthal of Cerity Partners hyped UnitedHealth Group Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) as a &#8220;solid&#8221; healthcare company in the latest edition of CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/07/10/final-trades-edwards-lifesciences-first-citizens-unitedhealth-and-ishares-us-real-estate-etf.html">Halftime Report Final Trades</a>.&#8221; 
On July 9, Cantor Fitzgerald analyst Sarah James reiterated UnitedHealth with an Overweight rating and maintained a price target of $591.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>.
Brian Belski of BMO Capital Markets said First Citizens BancShares, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCNCA#NASDAQ">FCNCA</a>) is a &#8220;<a href="https://www.benzinga.com/quote/FCNCA/earnings">great, great brand</a>.&#8221;
First Citizens BancShares is expected to report its financial results for the quarter ended June 30, 2024, before the opening bell on Thursday, July 25. Analysts expect the company to report quarterly earnings at $44.57 per share on revenue of $2.33 billion.
Shannon Saccocia of NB Private Wealth named iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>) as her final trade.
On May 14, Ventas declared a second-quarter 2024 dividend of 45 cents per common share.
Joseph M. Terranova of Virtus Investment Partners picked Edwards Lifesciences Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EW#NYSE">EW</a>).
On June 3, Becton, Dickinson And Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BDX#NYSE">BDX</a>) said it will acquire Edwards Lifesciences Corp's Critical Care product group, an advanced monitoring solutions provider, for $4.2 billion in cash.
Price Action:
<ul>
<li>First Citizens BancShares shares gained 1.3% to close at $1,743.19 on Wednesday.</li>
<li>UnitedHealth rose 1.8% to settle at $500.93 during Wednesday's session.</li>
<li>iShares U.S. Real Estate ETF gained 0.8% on Wednesday.</li>
<li>Edwards Lifesciences shares gained 0.3% to close at $93.78 during Wednesday's session.</li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39708358/wall-streets-most-accurate-analysts-weigh-in-on-3-consumer-stocks-delivering-high-dividend-yields">Wall Street&#8217;s Most Accurate Analysts Weigh In On 3 Consumer Stocks Delivering High-Dividend Yields</a></li>
</ul>

FCNCA

UnitedHealth, Edwards Lifesciences, First Citizens Bank And More: CNBC's 'Final Trades'

CNBC Halftime Report Final Trades: Edwards Lifesciences, iShares Dow Jones US Real Estate ETF, First Citizens Bank, UnitedHealth

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/05/20/final-trades-axon-enterprise-morgan-stanley-eagle-materials-and-iyr.html">Halftime Report Final Trades</a>,&#8221; Rob Sechan of NewEdge Wealth named Eagle Materials Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXP#NYSE">EXP</a>) as <a href="https://www.benzinga.com/quote/EXP/news">his final trade.</a>
On May 17, Eagle Materials announced plans to modernize and expand its cement plant in Laramie, Wyoming.
Sarat Sethi of DCLA said Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) hit the $100 level on the way up.
Morgan Stanley, last week, declared a substantial $269.9 million investment in spot Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) ETFs through Grayscale&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GBTC#OTC">GBTC</a>) in <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38875939/morgan-stanley-declares-270m-investment-into-bitcoin-etfs-in-q1-leads-institutional-inflow">their first quarter 13F filing</a>.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Shannon Saccocia of NB Private Wealth picked iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>) as her final trade.
Joseph M. Terranova of Virtus Investment Partners named Axon Enterprise, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>).
On May 6, Axon Enterprise posted better-than-expected results for its first quarter, reporting adjusted earnings of $1.15 per share beating market estimates of 94 cents per share. The company's quarterly sales came in at $460.736 million versus expectations of $441.566 million. Axon raised its FY24 revenue&nbsp;outlook and also announced plans to acquire Dedrone, a global leader in airspace security.
Price Action:
<ul>
<li>Eagle Materials shares rose 0.3% to close at $256.97 on Monday.</li>
<li>Morgan Stanley gained 0.1% to settle at $100.33 during Monday's session.</li>
<li>iShares U.S. Real Estate ETF fell 0.7% during Monday's session.</li>
<li>Axon Enterprise shares rose 1.1% to close at $292.03 on Monday.</li>
</ul>
Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/05/38917316/3-5m-bet-on-this-healthcare-stock-check-out-these-3-penny-stocks-insiders-are-aggressive">$3.5M Bet On This Healthcare Stock? Check Out These 3 Penny Stocks Insiders Are Aggressively Buying</a>
Image: Shutterstock

$BTC

AXON

GBTC

Morgan Stanley, Eagle Materials, Axon Enterprise And More: CNBC's 'Final Trades'

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/05/08/final-trades-netflix-nextera-energy-and-iyr.html">Halftime Report Final Trades</a>,&#8221; Joseph M. Terranova of Virtus Investment Partners picked Netflix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>).
On April 18, Netflix reported first-quarter revenue of $9.37 billion — up 14.8% year-over-year. 
The revenue beat a Street consensus estimate of $9.275 billion, according to data from Benzinga Pro. The company reported earnings per share of $5.28 for the quarter, which beat a Street consensus estimate of $4.51. 
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38651122/tom-brady-roasted-for-cryptocurrency-investment-in-netflix-special-tom-how-did-you-fall-fo">Tom Brady Roasted For Cryptocurrency Investment In Netflix Special &#8211; &#8216;Tom, How Did You Fall For That? Even Gronk Was Like—Me Know That&#8217;s Not Real Money&#8217;</a>
Netflix added 9.33 million paid net new subscribers in the first quarter to bring the company to a total of 269.60 million.
Also on &#8220;Final Trades,&#8221; Shannon Saccocia of NB Private Wealth named iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>) as her final trade.
Karen Firestone of Aureus Asset Management said NextEra Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>) is now going higher and business is coming back.
On April 23, NextEra Energy posted better-than-expected earnings for its first quarter, reporting adjusted earnings of 91 cents per share, beating market estimates of 73 cents per share. 
On May 7, BMO Capital analyst James Thalacker maintained NextEra Energy with an Outperform and raised the price target from $72 to $78.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Price Action:
<ul>
<li>iShares U.S. Real Estate ETF fell 0.8% on Wednesday.</li>
<li>NextEra Energy shares gained 1.3% to settle at $72.85 during Wednesday's session.</li>
<li>Netflix shares rose 0.6% to settle at $609.47 on Wednesday.</li>
</ul>
Check This Out: <a href="https://www.benzinga.com/news/24/05/38699603/top-2-financial-stocks-that-may-fall-off-a-cliff-in-may">Top 2 Financial Stocks That May Fall Off A Cliff In May</a>
Image: Shutterstock

NFLX

Netflix, NextEra Energy And More On CNBC's 'Final Trades'

If you&#8217;re keen on placing a &#8220;For Sale&#8221; sign in front of your home, research suggests it&#8217;s a smart move.
April 14 through April 20 is &#8220;the best time to sell your home,&#8221; according to <a href="https://www.realtor.com/research/best-time-to-sell-2024/">data</a> from Realtor.com. It&#8217;s the &#8220;peak week nationally&#8221; for sellers to maximize return on investment, or ROI. 
Here&#8217;s why:
<ul>
<li>Mid-April listings get 22.8% more views</li>
<li>Homes sell at a 17% faster rate</li>
<li>Historically, home prices are 1.1% higher this week than the average week throughout the year</li>
<li>And, prices are 10.4% higher this week versus the start of the year.</li>
<li>The national median listing price could reach $7,400 above the average week, and $34,000 more than the start of the year.</li>
</ul>
See Also: <a href="https://www.benzinga.com/real-estate/24/04/38164522/biden-administration-announces-intent-to-add-500-000-starter-homes-to-americas-housing-inventory">Biden Administration To Add 500,000 Starter Homes To America&#8217;s Housing Inventory</a>
<h1 class="wp-block-heading">Not Yet Ready To Sell?</h1>
Don&#8217;t sweat if you&#8217;re not quite prepared to list your digs. Time is on your side. 
Realtor.com reports 53% of home sellers take one month or less to get their home ready to list. And, if you prep now, May and June are also opportune times.
That&#8217;s according to <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/2023-best-days-of-the-year-to-sell-a-home-analysis/">ATTOM</a>, a real estate data provider. From April to June, seller premiums can be 10% or more above market value. 
And the top 16 best days to sell are actually in May, ATTOM claims.
<h1 class="wp-block-heading">When&#8217;s The Worst Time?</h1>
The three slowest months of the year are October, November and December, according to <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/2023-best-days-of-the-year-to-sell-a-home-analysis/" target="_blank" rel="noreferrer noopener">ATTOM</a>.
And, coming out of the winter months, consumer perceptions of both homebuying and home-selling conditions are improving. Both measures have now risen multiple months in a row, the Federal National Mortgage Association (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FNMA#OTC">FNMA</a>), also known as Fannie Mae, reported in March.
The most recent Fannie Mae Home Purchase Sentiment Index (HPSI) is up 10.6 points year over year.
"The housing market will continue to be characterized by high home prices, high financing costs, and a limited number of homes for sale," Bankrate chief financial analyst Greg McBride <a href="https://www.benzinga.com/opinion/24/03/37938028/exclusive-interest-rates-rode-the-elevator-up-but-analyst-predicts-theyll-take-the-stairs-coming-dow">told Benzinga last month</a>.
Rising home prices often reflect a healthy real estate market, which can boost the value of real estate assets held within certain exchange-traded funds (ETFs), such as: Vanguard Real Estate Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>); the Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>); the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) and the iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>). 
Now Read: <a href="https://www.benzinga.com/news/24/03/37775181/is-trumps-son-in-law-the-new-real-estate-mogul-jared-kushner-commits-500m-to-serbian-project-that-ca">Is Trump&#8217;s Son-In-Law The New Real Estate Mogul? Jared Kushner Commits $500M To Serbian Project That Caught Ex-President&#8217;s Fancy</a>
Photo: Shutterstock

FNMA

SCHH

Is Your Home For Sale? It's 'Peak Week,' Researchers Say

The recent spike in national mortgage rates stirred concerns among homebuyers and economists alike. With the 30-year fixed-rate mortgage (FRM) climbing to 6.88% on April 11, questions arise about the trajectory of <a href="https://www.benzinga.com/real-estate">the housing market.</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="644" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/11122010/Screenshot-2024-04-11-at-9.49.14-PM.png" alt="" class="wp-image-288021" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/11122010/Screenshot-2024-04-11-at-9.49.14-PM.png 874w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/11122010/Screenshot-2024-04-11-at-9.49.14-PM-300x221.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/11122010/Screenshot-2024-04-11-at-9.49.14-PM-768x566.png 768w" sizes="(max-width: 874px) 100vw, 874px" /></figure>
Chart Source: Freddie Mac
Additionally, other key indicators such as the 15-year fixed mortgage rate, which rose to 6.16%, signaled a broader trend of rate hikes.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/03/37855254/are-you-a-housing-market-lock-in-high-mortgage-rates-result-in-people-not-living-in-homes-they-w">Are You A Housing Market Lock-In? High Mortgage Rates Result In &#8216;People Not Living In Homes They Would Prefer&#8217;</a>
<h1 class="wp-block-heading">Stubborn Inflation And The Fed To Blame</h1>
Per <a href="https://www.freddiemac.com/pmms">Freddie Mac</a>, mortgage rates have gradually increased through the year, due to persistent inflation and the reassessment of the Federal Reserve&#8217;s monetary policy trajectory. 
The latest inflation figures from March indicate minimal change, but the financial market&#8217;s response presents a contrasting economic outlook. The March estimate of 3.5% annual inflation growth fell within the range of 3.1% to 3.7%, while the Dow Jones Industrial Average experienced a significant decrease following the announcement. This is reminiscent of the unmet expectations of a recession from a year prior.
<h1 class="wp-block-heading">Worst Day For Mortgage Rates Since October 2022</h1>
On April 10, the average lender experienced a mortgage rate hike by 0.28%, almost equivalent to the 0.29% rise observed after the Feb. 2 jobs report. Mortgage News Daily <a href="https://www.mortgagenewsdaily.com/markets/mortgage-rates-04102024">described</a> this as &#8220;basically the worst day for mortgage rates since October 2022.&#8221;
Many analysts anticipated mortgage rates to drop below 7% in the current year. However, persistent inflation figures prevent rates from reaching the desired lower levels.
<h1 class="wp-block-heading">McBride&#8217;s Musings: An Expert&#8217;s Take</h1>
Greg McBride, CFA, chief financial analyst for Bankrate, said the uncertainty persists regarding whether the current inflationary trend is temporary or posed a substantial threat to the progress made in reducing inflation in 2023. He suggested that until there was a clearer consensus on the trajectory of inflation, it would be challenging for mortgage rates to significantly and consistently decline below 7 percent.
Despite hopes for rates to dip below 7%, stubborn inflation numbers thwart expectations, posing challenges for prospective homebuyers and the housing market as a whole. 
"The housing market will continue to be characterized by high home prices, high financing costs, and a limited number of homes for sale," McBride told Benzinga in <a href="https://www.benzinga.com/opinion/24/03/37938028/exclusive-interest-rates-rode-the-elevator-up-but-analyst-predicts-theyll-take-the-stairs-coming-dow">an exclusive interview</a>.
This might spell good news for those invested in the Vanguard Real Estate Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>), the Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>), the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) and the iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>). Rising home prices often reflect a healthy real estate market, which can boost the value of real estate assets held within these ETFs.
However, investors in mortgage ETFs such as the&nbsp;iShares MBS ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MBB#NYSE">MBB</a>) and the&nbsp;Vanguard Mortgage-Backed Securities Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VMBS#NYSE">VMBS</a>) may want to remain wary of their holdings.
<h1 class="wp-block-heading">The Affordability Abyss</h1>
As experts weigh in on the implications of these developments, the affordability crisis deepens, compounded by limited housing inventory and stagnant wage growth. While navigating this landscape, the question is: are we witnessing the beginning of a sustained upward trend in mortgage rates?
Read Next: <a href="EXCLUSIVE: Interest Rates Rode The Elevator Up, But Analyst Predicts They'll Take 'The Stairs Coming Down'">EXCLUSIVE: Interest Rates Rode The Elevator Up, But Analyst Predicts They&#8217;ll Take &#8216;The Stairs Coming Down&#8217;</a>
Photo: Shutterstock

VMBS

Will Mortgage Rates Pop Again? Homebuyers Combat An Affordability Crises

Interest rates are on everyone&#8217;s radar, but what&#8217;s the game plan amid the Federal Reserve&#8217;s decision to hold <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37900527/federal-reserve-pushes-stocks-to-record-highs-as-rate-cuts-loom-nvidia-rallies-appl">steady for now</a>? 
Benzinga interviewed Greg McBride, CFA, Senior Vice President of Bankrate, for his exclusive insights on the current state of the economy and his expectations with the future.
Related: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37900527/federal-reserve-pushes-stocks-to-record-highs-as-rate-cuts-loom-nvidia-rallies-appl">Federal Reserve Pushes Stocks To Record Highs As Rate Cuts Loom, Nvidia Rallies, Apple Faces Legal Woes: This Week In The Markets</a>
<h2 class="wp-block-heading">Interest Rates May Take The Stairs Coming Down</h2>
McBride offered some very actionable insights. In response to a question about the Fed keeping interest rates unchanged this time, McBride said, &#8220;Interest rates took the elevator going up, but they're going to take the stairs coming down.&#8221; 
Per McBride, savers can capitalize on potentially lucrative returns that outpace inflation, from savings accounts, money markets, and CDs, provided they shop around for optimal deals. For borrowers, the mantra remains clear: prioritize slashing high-cost credit card debt.
His advice? &#8220;Always make at least your minimum payment on time – you can always pay more later.&#8221; It&#8217;s about dodging those pesky overdraft fees and late charges.
<h2 class="wp-block-heading">Real Estate Enthusiasts, Brace Yourselves</h2>
McBride&#8217;s forecast suggests a seller&#8217;s market, with limited inventory dictating terms. And falling mortgage rates? They might not spell relief as home prices continue their upward trajectory. &#8220;The housing market will continue to be characterized by high home prices, high financing costs, and a limited number of homes for sale,&#8221; said McBride.
This should be good news for those invested in the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>), the Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>), the Real Estate Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) or the iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>). Rising home prices often reflect a healthy real estate market, which can boost the value of real estate assets held within these ETFs.
Investors in mortgage ETFs such as the iShares MBS ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MBB#NYSE">MBB</a>) and the Vanguard Mortgage-Backed Securities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VMBS#NYSE">VMBS</a>) may see a mixed impact.
Rising home prices can increase the value of mortgage-backed securities (MBS) held within mortgage ETFs. This appreciation can lead to higher returns for investors holding these ETFs. However, higher home prices also make it more challenging for potential homebuyers to afford properties and/or to refinance their existing mortgages, potentially leading to decreased demand for mortgages.
Also Read: <a href="https://www.benzinga.com/real-estate/reit/24/03/37882885/10-real-estate-stocks-move-on-thursday-fed-rate-cut-possibility-sparks-rally-for-troubled-sector">10 Real Estate Stocks Move On Thursday: Fed Rate Cut Possibility Sparks Rally For Troubled Sector</a>
<h2 class="wp-block-heading">Legislative Acts May Sway Sentiment, Let Diversified ETFs Steer Your Ship</h2>
When questioned on legislative juggernauts like the CHIPS Act and Infrastructure Act that promise economic shifts, McBride&#8217;s advice is refreshingly pragmatic: &#8220;Investors are best served building a low-cost, well-diversified portfolio.&#8221; Forget chasing fleeting trends; it&#8217;s consistency that builds wealth, he says.
Exchange-traded funds are a low-cost, diversified way to gain exposure and build wealth consistently. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) are the most popular and largest ETFs for U.S. equity exposure.
When asked about legislative acts impacting consumer sentiment and spending behavior, McBride said, &#8220;When Americans have jobs and paychecks coming in, the money gets spent.&#8221; Legislative acts may sway sentiment, but economic fundamentals steer the ship.
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EXCLUSIVE: Interest Rates Rode The Elevator Up, But Analyst Predicts They'll Take 'The Stairs Coming Down'

On CNBC&rsquo;s &quot;<a href="https://www.cnbc.com/video/2024/03/19/final-trades-jp-morgan-disney-and-iyr.html">Halftime Report Final Trades</a>,&quot; Joshua Brown of Ritholtz Wealth Management named JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>), which hit a new 52-week high on Tuesday. &quot;I think the stock is good for <a href="https://www.benzinga.com/news/24/03/37464248/jpmorgan-aims-for-1-5b-in-ai-value-by-2023-boosting-efficiency-in-corporate-finance"> over $200,&quot; he added. </a>
On March 19, JPMorgan Chase raised its common stock dividend from $1.05 to $1.15 per share. Oppenheimer analyst Chris Kotowski maintained JPMorgan with an Outperform but lowered the price target from $238 to $219.
JPMorgan Chase is scheduled to review first-quarter 2024 financial results before the opening bell, on April 12, 2024.
Shannon Saccocia of NB Private Wealth picked&nbsp;iShares U.S. Real Estate ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyr#NYSE">IYR</a>) as her final trade.
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
Jim Lebenthal of Cerity Partners recommended having a look at the chart of The Walt Disney Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>). &quot;This is just dying to break out to a new 52-week high,&quot; he added.
Walt Disney&rsquo;s ESPN announced two new agreements with the College Football Playoff. ESPN, a subsidiary of Disney, and the College Football Playoff reached a $7.8 billion agreement that ensured ESPN would continue to be the exclusive rights holder for the college football playoffs <a href="https://www.benzinga.com/news/24/03/37833960/disneys-espn-college-football-playoff-reach-new-agreement-whats-going-on">through the 2031-32 season</a>.
Price Action:
<ul>
<li>JPMorgan shares gained 0.6% to settle at $193.79 on Tuesday.</li>
<li>iShares U.S. Real Estate ETF gained 0.1% on Tuesday.</li>
<li>Disney rose 0.6% to settle at $114.51 during Tuesday&rsquo;s session.</li>
</ul>
Check This Out: <a href="https://www.benzinga.com/news/earnings/24/03/37839250/micron-signet-jewelers-and-3-stocks-to-watch-heading-into-wednesday"> Micron, Signet Jewelers And 3 Stocks To Watch Heading Into Wednesday </a>
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Disney, JPMorgan And More: CNBC's 'Final Trades'

CNBC Halftime Report Final Trades: JP Morgan Chase & Co., The Walt Disney Company, IShares U.S. Real Estate ETF

On CNBC&rsquo;s &quot;<a href="https://www.cnbc.com/video/2024/03/13/final-trades-sherwin-williams-valero-and-the-iyr.html">Halftime Report Final Trades</a>,&quot; Karen Firestone of Aureus Asset Management named The Sherwin-Williams Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shw#NYSE">SHW</a>) <a href="https://www.benzinga.com/news/earnings/24/01/36784947/sherwin-williams-outperforms-in-q4-surpasses-revenue-estimates-beats-earnings-consensus"> as her final trade. </a>
On Jan. 25, Sherwin-Williams reported fourth-quarter revenue of $5.252 billion, beating the consensus of $5.220 billion. Sales grew 0.4% year over year.
The Cleveland-based company reported adjusted EPS of $1.81, beating the analyst consensus of $1.80. Sherwin-Williams said it expects FY24 adjusted EPS of $10.85-$11.35, versus analyst consensus of $11.33, according to data from Benzinga Pro.
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a>
Shannon Saccocia of Boston Private picked iShares U.S. Real Estate ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyr#NYSE">IYR</a>).
Joseph Terranova of Virtus Investment Partners named Valero Energy Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vlo#NYSE">VLO</a>) as his final trade.
On Jan. 25, Valero Energy reported fourth-quarter revenue of $35.41 billion, which missed the consensus of $35.69 billion. Adjusted EPS was $3.55, beating the consensus of $2.95, as per Benzinga Pro. On Jan. 18, the Board of Directors approved an increase in the regular quarterly cash dividend per share to $1.07 from $1.02, payable on March 4, 2024, to shareholders of <a href="https://www.benzinga.com/news/earnings/24/01/36785815/why-petroleum-company-valero-energy-shares-are-up-today">record as of Feb. 1, 2024</a>.
<h3>Price Action:</h3>
<ul>
<li>Sherwin-Williams shares fell 1.7% to close at $336.81 on Wednesday.</li>
<li>iShares U.S. Real Estate ETF fell 0.5% during Wednesday&rsquo;s session.</li>
<li>Valero Energy shares rose 5.2% to settle at $158.63 on Wednesday.</li>
</ul>
Check This Out: <a href="https://www.benzinga.com/news/24/03/37657564/top-4-financial-stocks-that-may-collapse-this-quarter"> Top 4 Financial Stocks That May Collapse This Quarter </a>
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