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.
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