Looking for a stake in global or American real estate? Check out these 2 ETFs



Real estate investment funds (REITs) enable investors to participate in the growth of real estate, one of the most important sectors of the economy. According to the National Association of Real Estate Investment Trusts (NAREIT):

“REITs invest in most types of real estate, including offices, apartment buildings, warehouses, shopping centers, healthcare facilities, data centers, cell towers, infrastructure and hotels.”

Exchange Traded Funds (ETFs), which are REIT-focused, offer the advantage of greater liquidity than direct investment in real estate. Plus, investors don’t have to worry about the various costs and legal issues (such as mortgages, real estate agents, or tenants) that might arise when owning a property.

PGIM, the investment management arm of Prudential Financial, highlights that in the second quarter:

“The best performers during the quarter were warehouse stores and shopping centers. Self-storage demand has skyrocketed during the pandemic, and it is well located in a reflationary environment with monthly rentals and low labor costs. Shopping malls continue to benefit from subdued consumer demand trends. The worst performers during the quarter were hospitality and healthcare. ”

Regular subscribers to this column know that we regularly cover the sector. For example, over the past few months we have discussed the following ETFs:

  • iShares Residential & Diversified Real Estate ETF (NYSE 🙂 – growth by 30.5% YTD (YTD) (covered and);
  • Pacer Benchmark Data & Infrastructure Real Estate SCTR (NYSE 🙂 – 15.4% YTD growth (covered);
  • SPDR Fund for Real Estate Sectors (NYSE 🙂 – up to 28.5% YTD (covered and);
  • VanEck Vectors Mortgage REIT Profitable ETF (NYSE 🙂 – up to 12.4% YTD (covered);
  • Stock ETF Vanguard Real Estate Index Fund (NYSE 🙂 – coverage increased by 25.5% since the beginning of the year and).

Today we are extending the discussion to two other foundations.

1. JP Morgan BetaBuilders MSCI US REIT ETF

  • Current price: US $ 100.35
  • 52 week range: US $ 68.76-101.86
  • Dividend Yield: 1.98%
  • Expense ratio: 0.11% per year

Our first foundation, JPMorgan BetaBuilders MSCI US REIT (NYSE :), focuses on the US real estate sector. NAREIT offers:

“The recovery in commercial real estate, like much of the rest of the economy, is likely to be uneven across sectors and subject to various delays and delays.”

PwC has a similar view:

“Industrial real estate, data centers and single-family homes are expected to rise in value, while retail and hospitality will experience the largest downturn.”

BBRE, which has 138 holdings, is tracking the performance of the MSCI US REIT Capped Index. The fund began trading in June 2018. The 10 largest holdings account for almost 40% of net assets of $ 1.42 billion.

BBRE Weekly

By subsector, the apartment segment is the highest with 24.6%, followed by diversified (19.0%), industrial (12.9%), medical (10.9%), office (105%), warehouses (9.2%), regional shopping centers (3.9%) and hotels (3.7%).

Prologis (NYSE :), invests in logistics facilities; digital infrastructure group Equinix (NASDAQ :); warehouse supplier Public storage (NYSE :); real estate investment fund Simon Real Estate (NYSE :), which mainly develops and operates shopping malls and premium stores, and Trust in digital real estate (NYSE :), a data center investor, tops the list.

Over the past year, the fund has grown by about 35.5% and 26.8% since the beginning of the year. On August 2, it reached a record high. Given the strong performance in 2021, short-term profit-taking could be in the game. Interested investors will find the best value around $ 95.

2. ETF Global X SuperDividend REIT

  • Current price: US $ 9.65
  • 52 week range: US $ 7.43-10.34
  • Dividend Yield: 6.58%
  • Expense ratio: 0.58% per year

The Aberdeen Standard Investment Research Institute (ASIRI) expects “a reasonable average-single-digit return on global real estate over the next three years as price declines decline and rents recover as the economy recovers.”

Our next foundation, Global X SuperDividend® REIT ETF (NASDAQ 🙂 might be of interest to readers, especially those looking for passive income who would also like to benefit from global trends in this sector. SRET invests in 30 highest dividend REITs in the world.

Weekly SRET

SRET, which began trading in March 2015, has approximately $ 496 million in assets. By subsector, mortgage REITs have the highest weight at 32.10%. Next in line are diversified REITs (21.01%), healthcare REITs (15.30%), and specialized REITs (11.12%), which may “include movie theaters, casinos, farmland, and outdoor advertising sites.”

About 70% of REITs are located in the United States. Next in line are Canada (11.2%), Australia (9.7%), Singapore (6.2%) and Mexico (2.8%). The top 10 names account for about 35% of the fund.

Among the leading stocks: Iron mountain (NYSE :), providing data storage and information management services; Chimera Investments (NYSE :), specializing in mortgage assets; Vereit (NYSE :), whose portfolio includes retail, restaurant, office and industrial properties with one tenant; Canadian REIT SmartCentres Real Estate Investment Trust (OTC 🙂 and real estate Industrial logistics property Trust (NASDAQ :), which owns and leases industrial and logistics facilities in the United States.

Over the past year, the fund has grown by about 22.5% and by 8.5% in 2021. In June, SRET hit a multi-year high. A potential drop to $ 9.2 or less would increase the safety margin.


Source link