Northern Trust’s (NasdaqGS: NTRS) FlexShares unit will introduce the FlexShares Global Quality Real Estate Index Fund (NYSEArca: GQRE) today.
With an annual expense ratio of 0.45%, GQRE will track the Northern Trust Global Quality Real Estate Index, a fundamentally-weighted index that focuses on commercial and residential REITs. Mortgage REITs, real estate finance companies, mortgage brokers and bankers, commercial and residential real estate brokers and real estate agents and home builders are among the securities that are excluded from the index. [FlexShares Could Lauch Quality REIT ETF]
Top country holdings in the index include the U.S. (46.8%), Japan (12.6%), Hong Kong (12.4%), the U.K. (7.7%) and Australia (5.2%). As of Oct. 18, the index had 151 constituents with anticipated annual turnover of 35-60% and an annual dividend yield of 2.95%, according to FlexShares data.
Real estate development, commercial real estate investment trusts and specialized REITs combine for 88% of the index’s weight. The index traded at 15.8 times cash flow with a return on equity of 10.7%, as last month.
GQRE will be the fifth ETF introduced by FlexShares this year and will be the firm’s fifteenth ETF overall. Prior to GQRE, the latest FlexShares ETF to come to market was the FlexShares STOXX Global Broad Infrastructure Index Fund (NYSEArca: NFRA), which launched last month.
Popular FlexShares funds include the FlexShares Morningstar Global Upstream Natural Resources Index ETF (NYSEArca: GUNR), the FlexShares Morningstar Emerging Markets Factor Tilt Index ETF (NYSEArca: TLTE) and the FlexShares Quality Dividend Index Fund (NYSEArca: QDF).
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.