ETF Spotlight: Small-Cap U.S. Real Estate
August 13th, 2012 at 8:38am by Tom Lydon
ETF Spotlight on the IndexIQ US Real Estate Small Cap ETF (NYSEArca: ROOF), part of an ongoing series.
Assets: $29.2 million.
Objective: The IQ US Real Estate Small Cap ETF tries to reflect the performance of the IQ US Real Estate Small Cap Index, which follows small capitalization U.S. real estate companies.
Holdings: Top holdings include: Starwood Property Trust (NYSE: STWD) 6.8%, Invesco Mortgage Capital (NYSE: IVR) 5.8%, Brandywine Realty Trust (NYSE: BDN) 4.5%, DCT Industrial Trust (NYSE: DCT) 3.9% and Cubesmart (NYSE: CUBE) 3.9%.
What You Should Know:
- IndexIQ sponsors the fund.
- ROOF has a 0.69% expense ratio.
- The fund has 44 holdings and the top 10 make up 42.3% of the overall portfolio.
- Market capitalization breakdown includes: mid-cap 6.8%, small-cap 68.0% and micro-cap 25.2%.
- Sub-sector allocations include: mortgage REITs 30.6%, office REITs 16.6%, Retail REITs 14.2%, Specialized REITs 13.2%, hotel REITs 12.4%, diversified REITs 8.6% and residential REITs 4.5%.
- The fund has a 4.55% 12-month yield, and dividends are paid out quarterly.
- The ETF is up 0.6% over the last month, up 5.1% over the past three months and up 21.6% year-to-date.
- ROOF is 6.4% above its 200-day exponential moving average.
The Latest News:
- Jim Sullivan, managing director of REIT research, Green Street Advisors, believes that operating fundamentals in most property types range from good to great, with shopping centers and industrials doing good and apartment businesses doing great, Bloomberg reports.
- Sullivan also notes that hotels and shopping center REITs will do well in an improving economy.
- For those who want to stay defensive, healthcare REITs help protect a portfolio, Sullivan added.
- The analyst also advises that selling bonds in favor of REITs is currently a good trade, but swapping S&P 500 stocks for REITs may not look as good as it did a year ago.
IndexIQ US Real estate Small Cap ETF
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.
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.