Exchange-traded Funds Report
1+1 ≠ 2
June 2007
Updates
iShares adds five US REIT sector ETFs
June 07, 2007
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Barclays Global Investors launched five narrow US REIT iShares on the NYSE in early May. They are: FTSE NAREIT Residential (REZ), FTSE NAREIT Industrial/Office (FIO), FTSE NAREIT Retail (RTL), FTSE NAREIT Mortgage (REM), FTSE NAREIT Real Estate 50 (FTY). The thinking is that different parts of the real estate market operate on different cycles, so investors can use the different funds to fine-tune exposure or to try to time the REIT market. Recently, for instance, the US corporate office space has been strong, while its residential market has been crumbling. According to iShares, the FTSE NAREIT Industrial/Office index outperformed the FTSE NAREIT Residential index by a stunning 16+% over the past six months. The new ETFs charge a uniform 0.48% in annual expenses. Components for each fund are drawn from the broader FTSE NAREIT Composite Index. |
