Real Estate ETF's
are a new investment vehicle that
have gained popularity in recent years as way to gain exposure to the
property sector. Real Estate exchange traded funds are constructed to
track a property index or a basket of property related stocks. ETF's
have grown in popularity, particularly the US as investors seek
alternative ways to invest.
Many ETF's are composed of domestic holdings but some funds are
international real estate ETF's. The following article examines some
popular real estate ETF's.
iShares S&P
World ex-US Property Index (WPS)
This ETF seeks to replicate the price and yield results of the
S&P/Citigroup BMI World ex-U.S Property Index. This index
tracks a
basket of real estate stocks in countries outside of the United States.
iShares Dow Jones
US Real Estate (IYR)
This ETF tracks the price and yield performance of the Dow Jones US
Real Estate Index. Constituent stocks include: REIT's, hotel and resort
firms.
iShares FTSE NAREIT
Real Estate 50 (FTY)
This ETF tracks the price and yield of the FTSE NAREIT Real Estate 50
Index which is comprised of the 50 largest REIT companies within the
FTSE NAREIT Composite Index.
iShares FTSE
NAREIT Mortgage REITs (REM)
Designed to replicate the price and yield performance of the FTSE
NAREIT Mortgage REITs Index which measures the performance of the
residential and commercial mortgage real estate sector of the US market.
iShares FTSE NAREIT
Residential (REZ)
This real estate ETF is designed to track the price and yield
performance of the FTSE NAREIT Residential Index which measures the
progress of the residential real estate sector of the US market.
Vanguard REIT Index
ETF (VNQ)
Aims to track the performance of the Morgan Stanley REIT Index by
investing in stocks issued by real estate investment trusts.
Top 10 Holdings:
Simon Property Group Inc: 6.39%
Vornado Realty Trust: 4.65%
ProLogis: 4.37%
Equity Residential: 4.14%
Smith Trust: 4.00%
Host Hotels & Resorts Inc: 3.87%
Boston Properties Inc: 3.70%
General Growth Properties Inc: 3.57%
Public Storage: 3.04%
AvalonBay Communities Inc: 2.90%
WisdomTree
International Real Estate (DRW):
This ETF seeks to track the yield and price performance of the Wisdom
Tree International Real Estate Sector Fund by investing in the index
constituent stocks.
Top 10 Holdings:
Westfield Group: 8.07%
Sun Hung Kai Properties Ltd: 4.65%
Cheung Kong (Holdings) Ltd: 3.85%
Stockland: 2.46%
General Property Group: 2.43%
Land Securities Group PLC: 2.19%
Goodman Group: 2.07%
Hang Lung Properties Ltd: 2.06%
Henderson Land Development Co Ltd: 1.92%
Allgreen Properties Ltd: 1.79%
*The percentage holdings are correct at time of writing but subject to
change.
