New Real Estate ETF Enters at a Challenging Time
November 21st 2008 at 1:00am by Tom Lydon
PowerShares Active Real Estate Fund (PSR) will trade on the New York Stock Exchange and will invest in real estate securities within the FTSE NAREIT Equity REITs Index.
Billy Fisher for TheStreet reports that the Equity REITs Index has fallen 41.2% this year, more than the S&P 500′s 37.6% decline. However, the Invesco company reveals they think this is an opportune time to jump into the real estate market. The investors need to be convinced that this is the bottom for real estate. It is also important to remember that the markets will not remain depressed forever and a recovery could be just around the corner. We watch the trend lines in order to get a sense of this.
One advantage the new PowerShares fund might have is that the actively managed format allows it to avoid areas of the market that have been hit the hardest. The fund will focus more on commercial real estate than single-family housing.
- SPDR Dow Jones Wilshire REIT Index (RWR), down 58.8% year-to-date
- iShares Dow Jones US Real Estate Fund (IYR), down 57.9% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.