ETF Chart of the Day: REIT Relief

With interest rates moving sharply lower in 2014 with a strong rally in Treasury Bonds (for reference, IEF (iShares Barclays 7-10 Year Treasury Bond, Expense Ratio 0.15%) was trading with a $99 handle before the year began, currently $101.78), there appears to be interest in the marketplace for REIT ETFs.

IYR (iShares Real Estate, Expense Ratio 0.48%) has impressively added more than $900 million to its asset base in recent sessions as the ETF trades in a reasonable narrow channel lately, seeming to consolidate in between its 50 and 200 day moving averages.

Top holdings in IYR, SPG (7.99%), AMT (5.33%), and PSA (3.68%) are all expected to report quarterly earnings in the near term, with SPG releasing this Friday (1/31), and AMT and PSA reporting in late February.

Other rate sensitive REIT Equity based ETFs that have to be in focus here include the larger VNQ (Vanguard REIT, Expense Ratio 0.10%), which at last count had about $17.9 billion in assets under management compared to IYR’s $4.1 billion.

Other prominent funds in the space that may very well see accelerations in activity include ICF (iShares Cohen & Steers Realty Majors, Expense Ratio 0.35%), RWR (SPDR Dow Jones REIT, Expense Ratio 0.25%), REM (iShares FTSE NAREIT Mortgage REITs, Expense Ratio 0.48%), SCHH (Schwab U.S. REIT, Expense Ratio 0.07%), REZ (iShares FTSE NAREIT Residential, Expense Ratio 0.48%), and FRI (First Trust S&P REIT Expense Ratio 0.50%) to name just a few.