Interest in International REIT ETFs Increases as U.S. REITs Decline

Now that U.S. real estate exchange traded funds (ETFs) dropped sharply as mortgage problems spread, investors are closely watching international real estate ETFs. With U.S. REITs such as the Dow Jones Wilshire REIT ETF (RWR) down 10.3% so far this year, interest in the SPDR Dow Jones Wilshire International Real Estate (RWX) increased, according to John Spence for MarketWatch. Picking up on this trend, other ETF providers recently launched international REIT ETFs.

One of the easiest ways to participate in the market is through real estate investment trusts (REITs). These publicly traded companies, which were established by the U.S. government in the 1960s, own and operate commercial real estate properties such as apartments, offices and warehouses. Be aware that international REIT ETFs are not without risk, so ensure they fit with your investment goals before purchasing. RWX, for example, is down 7.9% year-to-date.