Now that the housing market has cooled in the United States, why not invest in an exchange traded fund (ETF) that invests in the overseas real estate market? State Street Global Advisers is the first company to offer such a product in high demand. The streetTracks Dow Jones Wilshire International Real Estate ETF (RWX) gives access to a hard to reach market and deals in developed and emerging markets countries. A majority of the ETF focus’ on developed countries, such as Australia, Germany, Japan and the United Kingdom.
The ETF is not purely real estate or REITs because some countries do not have legislation that gives tax breaks like the REITs in the U.S. With an expense ratio of 0.6%, there are 161 holdings in the index, but RWX optimizes 142 stocks, reports John Spence of MarketWatch.com. Valuations are lower in the United States so the opportunity is here for more diversification in your portfolio.
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.