USRT will replace the iShares Real Estate 50 ETF (NYSEArca: FTY), which tracks 50 of the largest U.S. REITs and has a 0.48% expense ratio. Additionally, the new real estate ETF will track the FTSE NAREIT Equity REITs Index, a cap-weighted index designed to measure the performance of U.S. listed equity real estate investment trusts, excluding timber, infrastructure and mortgage REITs.
IMTB, which provides exposure to intermediate-term investment-grade and speculative-grade debt, will fill in a hole in the iShares’ line of broad global bonds. The new ETF will trade alongside the iShares Core 1-5 Year USD Bond ETF (NYSEArca: ISTB), which tracks global bonds with a maturity of one to five years, and the iShares Core Long-Term US Bond ETF (NYSEArca: ILTB), which includes global bonds that mature 10+ years.
“REIT stocks are underused sources of diversification and income. USRT simplifies access to an important portfolio building block with the potential for bond-like yields and stock-like appreciation. Similarly, investors can now take even more control of blending safety, diversification and income objectives with IMTB filling in the intermediate range of bond ETF maturities in the iShares Core line-up,” Small added.
For more information on new fund products, visit our new ETFs category.