With the U.S. real estate market in sad shape these days, investors might want to consider the appeals of global REIT (real estate investment trusts) exchange traded funds (ETFs). Global REIT ETFs offer more diversification than simply investing in the U.S. real estate market. As we know, a well-diversified portfolio can lower risk. That’s because different regions don’t always move in the same direction at the same time, the chance of either a sharp rise or a steep decline in the portfolio can be reduced, says The Sun for Seeking Alpha. Currently, there are several ETFs that invest in global REITs. Among them, FFR has the largest portion in the U.S. market, while other funds invest mainly in overseas markets.
First Trust FTSE EPRA/NAREIT Global Real Estate Index Fund (FFR) – Currently, this ETF is up 0.1% for the month, having just launched in August, and has a 0.60% expense ratio. Its top country weightings include:
- United States: 37.9%
- Japan: 12.7%
- Australia: 12.0%
SPDR Dow Jones Wilshire International Real Estate ETF (RWX) – Currently, this ETF is down 0.3% year-to-date and has an expense ratio of 0.60%. Its top country weightings include:
- Australia: 20.5%
- Japan: 18.8%
- United Kingdom: 16.2%
WisdomTree International Real Estate Fund (DRW) – Currently, this ETF is up 3.3% for the last three months, having launched in June and has an expense ratio of 0.58%. Its top country weightings include:
- Australia: 35.6%
- Hong Kong: 24.1%
- Japan: 10.5%
iShares S&P World ex-U.S. Property Index Fund (WPS) – Currently, this ETF is up 2.0% for the month, having launched in July and has a 0.48% expense ratio. Its top country weightings include:
- Japan: 22.5%
- Australia: 20.0%
- Hong Kong: 15.3%
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.