IYR “seeks to provide investment results corresponding to the Dow Jones U.S. Real Estate Index, its benchmark index. The ETF charges an annual net expense ratio of 0.43%, which is slightly above the real estate category’s average of 0.38%. As of July 11, 2016, the fund had total net assets of $4.64 billion and a 20-day average daily volume of 2.25 million shares, which provides investors with a high degree of liquidity. The fund returned 12.05% YTD as of June 30, 2016,” according to Investopedia.
The sudden spike in interest for REIT ETFs may be due to the pending GICS sector elevation of REITs as the REITs category remains underweighted in many actively managed mutual funds.
REITs may continue to experience a short-term boost in the months ahead as the S&P Dow Jones Indices stated it would add an 11th sector to its Global Industry Classification Standard, creating a new Real Estate Sector from the Financial Sector. The changes to the S&P 500 index will be implemented after the close of business on September 16, 2016.
IYR’s “top five sub-industry allocations are 27.11% specialized REITs, 20.3% retail REITs, 13.04% residential REITs, 9.83% office REITs and 9.79% health care REITs. As of June 30, 2016, the fund had a trailing 12-month yield of 3.94% and a 30-day SEC yield of 3.25%, which is attractive to investors,” adds Investopedia.
For more information on real estate investment trusts, visit our REITs category.
iShares Dow Jones US Real Estate Index Fund