Want to participate in the U.S. real estate industry bull market? Consider these two ETFs
The real estate industry is one of the most important parts of the US economy, and real estate investment trusts (REITs) can help investors participate in the growth of real estate.
According to the National Association of Real Estate Investment Trusts (NAREIT), “Real estate investment trusts (REITs) invest in most types of real estate, including offices, apartment buildings, warehouses, retail centers, medical facilities, data centers, cell phone towers, infrastructure, and Hotel etc."
At the same time, ETFs that focus on real estate investment trusts (REITs) have greater flexibility than direct investment in real estate. In addition, investors do not have to worry about various costs and legal issues (such as mortgages, housing agency rights, etc.). And tenants etc.).
PGIM, an investment management agency, pointed out that the real estate segment with the best performance in the second quarter was self-storage storage and shopping malls. The demand for self-storage storage during the epidemic has increased sharply, and the inflation environment is also in a favorable position, monthly rent and labor costs. Relatively low. Shopping malls continue to benefit from previously suppressed consumer demand. In addition, the worst-performing properties in the quarter were properties in the accommodation and medical industries.
Investors who follow the author's article may know that we often cover real estate investment trusts (REITs) ETFs, including the previous ones:
iShares Residential and Multisector Real Estate ETF (NYSE: REZ)-up 30.5% so far this year;
Pacer Benchmark Data & Infrastructure Real Estate SCTR (NYSE:SRVR)-up 15.4% year-to-date;
The Real Estate Select Sector SPDR Fund (NYSE:XLRE)-up 28.5% year-to-date;
VanEck Vectors Mortgage REIT Income ETF (NYSE: MORT)-up 12.4% year-to-date;
Vanguard Real Estate Index Fund ETF Shares (NYSE:VNQ) — up 25.5% year-to-date.
In this article, we continue to focus on two real estate investment trust (REITs) ETFs:
1. JP Morgan BetaBuilders MSCI US REIT ETF
Current price: $100.35
52-week range: 68.76-101.86 USD
Dividend yield: 1.98%
Expense ratio: 0.11% per year
JPMorgan BetaBuilders MSCI US REIT (NYSE:BBRE) focuses on investment in the real estate industry in the United States. The fund currently holds 138 stocks, which track the trend of the MSCI US REIT Capped Index, and began trading in 2018.
NAREIT suggests that, like other economic sectors, the recovery of commercial real estate may be uneven in every industry sector, and will be affected by various lags and delays. PricewaterhouseCoopers has the same view. The agency believes that the value of industrial real estate, data centers and single-family houses is expected to rise, while the value of retail and hotels will experience the greatest decline.
The industries occupied by BBRE include the apartment sector, which accounts for 24.6%, the highest share, followed by diversification (19.0%), industry (12.9%), healthcare (10.9%), office (105%), storage (9.2%) ), regional shopping malls (3.9%) and hotels (3.7%).
In addition, the top ten positions of BBRE account for about 40% of the total assets of 1.42 billion US dollars. Including logistics facility investor Prologis (NYSE:PLD), digital infrastructure group Equonics (NASDAQ:EQIX), self-storage warehousing service provider Public Storage Company (NYSE:PSA), which mainly invests in data center Digital Real Estate Trust Company (NYSE: DLR), and Simon Real Estate Group (NYSE: SPG), a real estate investment trust that develops and manages shopping centers and branded high-end stores.
According to data, the fund has risen by 35.5% so far this year and has risen by 26.8% in the past year. It just hit a record high on August 2. Given the strong performance in 2021, profit-taking may occur in the short term. Interested investors can pay attention when it drops to around US$95.
2. Global X SuperDividend REIT ETF
Current price: $9.65
52-week range: 7.43-10.34 USD
Dividend yield: 6.58%
Expense ratio: 0.58% / year
Readers may also be interested in Global X SuperDividend® REIT ETF (NASDAQ: SRET), especially those fixed income investors who want to benefit from the global trends in the industry-SRET invests in the 30 highest dividend yields in the world REITs. The fund began trading in March 2015, with a total capital of approximately US$496 million.
In terms of industry, SRET mortgage REITs have the highest weight, reaching 32.10%, followed by diversified real estate investment trusts (21.01%), healthcare real estate investment trusts (15.30%) and professional real estate Investment trust funds (11.12%), including movie theaters, casinos, farmland and outdoor advertising websites.
In terms of geographic location, 70% of the majority of real estate trusts invested by SRET are in the United States, followed by Canada (11.2%), Australia (9.7%), Singapore (6.2%) and Mexico (2.8%).
In addition, the top ten investment targets account for about 35% of the total funds. Mainly include
Ion Iron Mountain (NYSE: IRM), which provides data storage and information management services, Chimera Investments (NYSE: CIM), which focuses on mortgage assets, Vereit (VER), whose investment portfolio includes retail, catering, and office for a single tenant And industrial real estate assets, Canada REIT Smart REIT (OTC: CWYUF), and Industrial Logistics Properties Trust (NASDAQ: ILPT), etc.
The Investment Research Institute ASIRI pointed out, “As the economy resumes opening up, housing prices fall and rents rise, global real estate will achieve reasonable median returns in the next three years.”
In the past year, SRET has risen by 22.5% and has risen by 8.5% so far in 2021. It reached a multi-year high in June. If its price drops to a level of US$9.2 or lower, investors can pay attention.
