MNREX or TRRSX: Which Real Estate Mutual Fund to Buy?

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Investing in the real estate sector adds stability to your portfolio, mainly because real estate price volatility is much less than what stocks experience. Thus, investors looking to maintain long-term positions should consider using mutual funds in the real estate industry, as they add stability and generate stable returns. This category of funds also offers excellent inflation protection and is a reliable investment choice.

Meanwhile, the Real Estate Select Sector SPDR Fund (XLRE) has grown 23.4% in the past six months. So, investing in real estate mutual funds seems to be reasonable nowadays. Let’s take a look at two of the best funds from space and find out which one is the best to invest in.

Manning & Napier Estate Series S Class MNREX

This fund is aimed at high current income and long-term capital increase through investments, primarily in companies operating in the real estate sector. The fund invests at least 80% of its assets in the securities of companies that are mainly engaged in real estate.

This Real Estate Sector product has had a positive cumulative return for over 10 years. In particular, the fund’s return is 12.4% over a three-year period and 7.5% over a five-year period. To see how this fund performs compared to its category and other # 1 and 2 rated mutual funds, please click here

Class S Fund Manning & Napier Real Estate Series at the time of the last filing of the application distributes its assets into two main groups; Interim bond and high value. In addition, at the time of last registration Equinix, Inc. and Prologis, Inc. were the largest holdings of MNREX.

This Zacks Mutual Fund Rank # 1 (Strong Buy) fund was established in November 2009 and is operated by Manning & napier… MNREX has an expense ratio of 1.10% and requires a minimum initial investment of US $ 2,000.

Pension class TIAA-CREF Real Estate Securities Fund TRRSX

The fund seeks to maximize overall long-term profit through capital growth and current income. TRRSX invests a significant portion of its assets in companies that are primarily engaged in real estate related activities. The fund may invest no more than 15% of its assets in securities issued by foreign organizations.

This Real Estate Sector product has had positive overall returns for over 10 years. In particular, the fund’s return is 16.1% over a three-year period and 10.3% over a five-year period. To see how this fund performs compared to its category and other # 1 and 2 rated mutual funds, please click here

The TIAA-CREF Securities Fund retirement class at the time of the last application divides its assets into two main groups: bridging bonds and large sums. In addition, at the time of the last registration, the main assets of TRRSX were Prologis, Inc. and American Tower Corp.

This Zacks Rank # 1 (Strong Buy) fund was established in December 2002 and is operated by TIAA-CREF… TRRSX has an expense ratio of 0.75% and requires a minimum initial investment of $ 0.

To conclude

While both MNREX and TRRSX are Buy rated funds, upon closer inspection we find the latter to be the clear winner. Not only is MNREX’s administrative and other operating costs higher than TRRSX, the latter has a history of delivering higher and more stable margins compared to MNREX.

It should also be noted that TRRSX offers less risk compared to MNREX. TRRSX has a three-year beta of 0.74 compared to MNREX’s 0.78. Thus, TRRSX is a fund to bet on given its moderately lower risk and consistently higher returns.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.

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