ETF Spotlight on the Guggenheim Wilshire US REIT ETF (NYSEArca: WREI), part of an ongoing series.
Assets: $16.6 million
Objective: The WilShire U.S. REIT ETF tries to reflect the performance of the WilShire US Real Estate Investment Trust Index, which includes a diversified selection of property REITs taken from the broader WilShire 5000 Total Market Index.
Holdings: Top holdings include Simon Property Group (NYSE: SPG) 9.7%, Public Storage (NYSE: PSA) 4.6%, Equity Residential (NYSE: EQR) 4.2%, Prologis (NYSE: PLD) 3.9% and Vornado Realty Trust (NYSE: VNO) 3.7%.
What You Should Know:
- Guggenheim Investments sponsors the fund.
- WREI has a 0.32% expense ratio.
- The ETF has 114 holdings and the top ten components make up 43.5% of the overall portfolio.
- The fund includes sub sector weights toward diversified REITs, health care REITs, hotels & resort REITs, industrial REITs, office REITs, residential REITs, retail REITs and specialized REITs.
- WREI is up 2.3% over the past month, up 7.7% over the last three months and up 17.1% year-to-date.
- The ETF shows a 12-month yield of 2.87%.
- The Guggenheim REIT ETF provides broad exposure to real estate investment trusts.
- REITs are companies that mange commercial properties and collect on the rent.
- A real estate firm has to pay out 90% of its taxable income to shareholders as dividends to qualify as a REIT.
- These investments have allowed investors to gain exposure to commercial real estate and diversify traditional equity and fixed-income investment portfolios.
- Potential investors should be aware that the risk of rising rates posees as the largest risk to the REIT sector.
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