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Since publishing an introduction to real estate ETF’s in February, we’ve received many questions regarding the differences between each of these ETF’s and while it would take a lot of time to go into each of these ETF’s in depth, we decided to publish a report describing the main REIT ETF’s that should be considered when building a long term portfolio. You read it well, these picks are for long term investing. I did include the leveraged ETF’s in the table at the bottom of this post because they can be viable short term options but even then. I can understand investing short term on commodities which move according to very well defined criteria’s such as inventories, supply, demand, etc. But Real Estate is much more of a macro-economic, long term investment, especially when made at a broad level like all ETF’s that are currently available.
Maybe at some point some more specialized real estate ETF’s will be available such as New York Real Estate. I could imagine such an ETF moving quite a bit more when certain events take place. But how much do real estate prices move during a period of a few days? I would say not very much.
Real estate prices have been very very volatile and have suffered quite a collapse in recent months/years. You can get some reliable data of the valuations of real estate in the US on the Standard & Poors website here. Just take a look at this chart of the Schiller Price Index which tracks real estate prices in the major US cities:
So without further wait, here are the top REIT ETF’s by category:
REIT ETF: Top Return in the past year: IFNA 83.97%
IFNA is an ETF that tracks the FTSE EPRA/NAREIT North America Index
REIT ETF: Top Return in 2010: REZ +16,40%
REZ is an ETF that tracks the FTSE NAREIT residential index, an index that includes REIT stocks on US exchanges. You can read more about the index here.
REIT ETF: Lowest Fees & Most Assets under management: VNQ 0.12
VNQ’s goal is to closely track the return of the MSCI® US REIT Index, a gauge of real estate stocks.
Ticker Name Market Cap Price Fees Dividend Yield Return YTD 1Y Return
VNQ Vanguard REIT ETF $5,555,503,000.00 $49.76 0.12 3.65 14.96 80.564
IYR iShares Dow Jones US Real Estate Index Fund $2,829,195,000.00 $50.06 0.48 3.6 12.96 73.52
RWR SPDR Dow Jones REIT ETF $1,271,320,000.00 $54.69 0.25 3.2 14.77 80.647
RWX SPDR Dow Jones International Real Estate ETF $1,080,445,000.00 $32.09 0.59 4.32 (5.57) 33.329
URE ProShares Ultra Real Estate $640,463,100.00 $40.41 0.95 1.11 23.92 166.203
SRS ProShares UltraShort Real Estate $468,159,500.00 $27.94 0.95 0 (29.07) -78.25
IFGL iShares FTSE EPRA/NAREIT Developed Real Estate ex-US Index Fund $298,320,000.00 $25.95 0.48 7.74 (7.55) 30.135
DRN Direxion Daily Real Estate Bull 3x Shares $144,793,800.00 $44.55 0.96 1.49 37.59 N/A
RWO SPDR Dow Jones Global Real Estate ETF $122,285,000.00 $32.33 0.5 3.79 3.74 54.303
DRW WisdomTree International Real Estate Fund $77,064,750.00 $24.02 0.58 10.31 (7.62) 33.143
DRV Direxion Daily Real Estate Bear 3x Shares $76,576,500.00 $7.40 0.95 0 (46.09) N/A
FRI First Trust S&P REIT Index Fund $62,414,650.00 $13.08 0.5 2.05 14.85 79.769
REM iShares FTSE NAREIT Mortgage Plus Capped Index Fund $56,749,000.00 $14.57 0.48 9 2.81 27.309
TAO Claymore/AlphaShares China Real Estate ETF $51,435,650.00 $15.63 0.78 3.59 (12.80) 13.469
REZ iShares FTSE NAREIT Residential Plus Capped Index Fund $44,825,000.00 $34.93 0.48 3.38 16.40 79.715
FTY iShares FTSE NAREIT Real Estate 50 Index Fund $41,485,500.00 $30.05 0.48 3.7 12.18 72.771
FFR First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund $35,046,310.00 $30.10 0.6 5.94 0.49 48.556
IFAS iShares FTSE EPRA/NAREIT Developed Asia Index Fund $21,696,000.00 $26.68 0.48 5.42 (6.61) 30.036
PSR PowerShares Active U.S. Real Estate Fund $12,521,970.00 $40.72 0.8 1.6 11.05 76.08
RTL iShares FTSE NAREIT Retail Capped Index Fund $11,223,000.00 $24.22 0.48 3.62 17.07 79.524
FIO iShares FTSE NAREIT Industrial/Office Capped Index Fund $10,240,000.00 $24.73 0.48 3.12 7.63 74.904
IFEU iShares FTSE EPRA/NAREIT Developed Europe Index Fund $7,350,000.00 $23.86 0.48 3.45 (17.53) 16.639
IFNA iShares FTSE EPRA/NAREIT North America Index Fund $7,432,000.00 $37.16 0.48 3.01 12.91 83.966
REK ProShares Short Real Estate $4,724,047.00 $48.35 0.95 0 N/A N/A
WREI Wilshire US REIT ETF $1,380,500.00 $27.61 0.32 0 N/A N/A
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