Strategists recommend adjusting portfolios in real estate and homebuilding ETFs ahead of expected Federal Reserve easing.
Investors are positioning for Federal Reserve rate cuts, targeting ETFs like TLT, XLRE, and ITB for potential gains. Strategists suggest these sectors could benefit from lower borrowing costs and improved liquidity.
TLT, the iShares 20+ Year Treasury Bond ETF, is seen as a direct play on falling yields. XLRE, the real estate sector ETF, and ITB, the home construction ETF, may rally as mortgage rates decline and housing demand rises.
Markets have priced in multiple rate cuts by year-end, with Fed officials signaling a shift toward accommodative policy amid cooling inflation data.