IYR (iShares U.S. Real Estate, Expense Ratio 0.43%) June 74 puts were in play on Friday as IYR had been in jeopardy of breaching its 200 day MA only to recover somewhat since Friday.
IYR has seen more than $1billion flow out in just the past month alone, a substantial sum given the fund’s $4.9 billion assets under management total.
Even though IYR is not the largest U.S. Real Estate Equity ETF, in fact far from it given VNQ’s (Vanguard REIT, Expense Ratio 0.10%) $26.8 billion asset base, it continues to see the lion’s share of directional and/or hedging options volume and activity as the “choice” in the space in terms of liquid options.
Other significant REIT ETFs that should be on short term radars include the $3.4 billion ICF (iShares Cohen & Steers REIT, Expense Ratio 0.35%), the $3.1 billion RWR (SPDR DJ Wilshire REIT, Expense Ratio 0.25%), as
well as the $1.2 billion SCHH (Schwab U.S. REIT, Expense Ratio 0.07%) and REM (iShares Mortgage Real Estate Capped, Expense Ratio 0.48%) which has $1.2 billion in AUM as well.
The leveraged and inverse offerings in the U.S. REIT Equity space are extremely timely right now, given the redemption pressure in IYR and DRN (Direxion Daily Real Estate Bull 3X, Expense Ratio 0.95%), DRV (Direxion Daily Real Estate Bear 3X, Expense Ratio 0.95%), URE (ProShares Ultra Real Estate, Expense Ratio 0.95%) and REK (ProShares Short Real Estate, Expense Ratio 0.95%) should be on everyone’s radar in terms of short term directional trading or hedging possibilities.