Best REIT ETF’s… May 2010 analysis

By: ispeculatornew
Date posted: 05.19.2010 (4:19 am) | Write a Comment  (1 Comment)

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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.

TickerNamePricePE RatioPE Next YearReturn YTDSales GrowthBook ValueBetaRevenue/ShareSales 5Y Avg Gr.EPS 5Y Gr.           
NILEBlue Nile Inc34.0638.2329-9.45.2210.8438.9910.394.54
TRIPTripAdvisor Inc69.6945.6230.95-18.4931.99.21.558.7124.67N/A

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1 Comment

  1. […] a large variety of asset and subasset classes. Any trader can get involved in small or large caps, real estate (REIT), bonds, gold, oil, other commodities and many many more. I hope you noticed the distinction though, […]

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