Top 5 Best Global Real Estate REIT Specialty ETFs

Global REIT Logo ETF
Global REIT Logo ETF

Intro

In my previous article, I have provided the top 5 US REIT Real Estate Exchange Traded Fund (ETF). In this article, I will discuss an alternative REIT ETF which is Global REIT. Global REIT ETF, also known as Non US REIT ETF, can provide another set of investment diversification. As we know, real estate investment is not for everyone. Most Billionaires in Asia have become richest due to their real estate investment. Although, US Real Estate value is decreasing during 2007-2008 crises, the global real estate value has increased in value continuously. The value has increased after the Asian Economic crisis in 1997-1998 periods. In Top 100 World Billionares list for 2010, there are 6 Asia Billionares which have their majority source of wealth from real estate such as Li Ka-Shing, Lee Shau Kee, Kwok family, Robert Kuok, Kushal Pal Singh, andMohamed Bin Issa Al Jaber. One of the ways to invest in Global REIT is by investing in Global REIT Exchange Traded Funds or ETF.

If you are interested in REIT fund, please check my following article:

Note: REIT = Real Estate Investment Trust


Criteria & Reason to Invest

Several reasons to invest in Global REIT ETF are:

  1. ETF is liquid and it trades like a stock. Investor and trader can buy or sell Global REIT ETF during trading hours or after / before trading hours.
  2. Most ETFs have low expense ratio. This is due to most of REIT ETFs are tracking its index passively.
  3. It provides an alternative way to diversify in other real estate investment market. Although the global real estate value took a hit during the recent crisis, the value has gained all its loss value. Also, global real estate doesn’t closely correlate directly with US Real Estate.

What are my criteria for selecting this Top 5 Best Global Real Estate REIT ETFs? I always like the big asset ETF fund. Since most the ETFs are new, some ETFs may not have any Morningstar rating or have a low Morningstar Rating. Also, since some of these ETFs are still new, some may have an asset as little as 10 million only. And the trading volume of these ETFs can be lower than other well established ETFs such as SPY, IVV and QQQQ. Please always use limit order when you want to place an order to buy ETF online. The following is the Top 5 Best Global Real Estate REIT ETFs:

  1. SPDR Dow Jones International Real Estate
  2. iShares FTSE EPRA/NAREIT Dev RE ex-US
  3. SPDR Dow Jones Global Real Estate
  4. iShares S&P Dev ex-US Property Index
  5. WisdomTree International Real Estate


Global REIT ETF list

(click column header to sort results)
No  
Fund Name  
Ticker  
Total Asset (Bil)  
Expense Ratio  
Morningstar rating  
Yield  
1
SPDR Dow Jones Intl Real Estate
RWX
1.4
0.59%
2
3.46%
2
iShares FTSE EPRA/NAREIT Dev RE ex-US
IFGL
0.39
0.48%
2
7.55%
3
SPDR Dow Jones Global Real Estate
RWO
0.15
0.50%
NR
3.29%
4
iShares S&P Dev ex-US Property Index
WPS
0.14
0.48%
2
4.85%
5
WisdomTree International Real Estate
DRW
0.12
0.58%
1
9.18%
6
Guggenheim China Real Estate
TAO
0.07
0.70%
NR
2.88%
7
First Trust FTSE EN Dev Mkts Rel Est Idx
FFR
0.06
0.60%
2
5.07%
8
Cohen & Steers Global Realty Majors ETF
GRI
0.04
0.55%
NR
5.37%
9
iShares FTSE EPRA/NAREIT Dev Asia Idx
IFAS
0.03
0.48%
2
6.09%
10
iShares FTSE EPRA/NAREIT Dev EU Idx
IFEU
0.01
0.48%
1
4.19%
SPDR Dow Jones International Real Estate
SPDR Dow Jones International Real Estate

1. SPDR Dow Jones International Real Estate

SPDR Dow Jones International Real Estate ETF is another SPDR products offered by State Street Global Advisors (SSGA). This is also the largest Global Real Estate ETF with 1.4 Billion total assets in investment. The fund seeks to imitate the price and yield performance of Dow Jones Global ex-US Select Real Estate Securities index. The index is a float adjusted market capitalization index designed to measure the performance of publicly traded real estate securities in countries excluding the U.S. The total expense ratio is 0.59% per year which is low compare to most mutual funds.

The primary portfolio consists of large blend foreign stocks or equities. As of December 2010, the top 5 REIT sectors of fund are Real Estate Operating Company, Diversified REIT, Regional Malls, Office REIT, and Mixed Industrial or Office REIT. Top 10 largest equity holdings for this fund include Westfield Group, Unibail-Rodamco Se, Mitsui Fudosan Co, Brookfield Asset Management Inc, Hang Lung Property, Westfield Retail T, Hong Kong Land Holding, Land Securities Gp, British Land Co, and Capitaland Ltd.


iShares FTSE EPRA/NAREIT Developed Real Estate ex-US
iShares FTSE EPRA/NAREIT Developed Real Estate ex-US

2. iShares FTSE EPRA/NAREIT Developed Real Estate ex-US

iShares FTSE EPRA/NAREIT Developed Real Estate ex-US is another ETF provided by iShares fund family. As part of BlackRock line up, ishares ETFs are very well known to many investors or traders. The iShares FTSE EPRA/NAREIT Developed Real Estate ex-US investment objective is to seek replication of, net of expenses, the FTSE EPRA/NAREIT Developed Real Estate ex-U.S. index. The fund invests most of its assets (>90%) in securities of the underlying index and in depositary receipts representing securities of the index. The underlying index measures the stock performance of companies engaged in the ownership and development of real estate markets as defined by FTSE EPRA/NAREIT.

With total asset of 390 millions, iShares FTSE EPRA/NAREIT Developed Real Estate ex-US ETF is smaller than SPDR Dow Jones International Real Estate ETF. When investor or trader wants to trade this ETF, it is recommended to use Limit Order.

The primary portfolio consists of large blend foreign stocks or equities. As of December 2010, the top 5 REIT sectors of fund are Real Estate Holding & Development, Retails REITs, Industrial and Office REIT, Residential REITs, Diversified REITs, and Diversified Industrials. The top 5 countries include Hong Kong, Japan, Australia, United Kingdom, Singapore and Canada. Top 10 largest equity holdings for this fund include Sun Hung Kai Properties, Westfield Group, Mitsubishi Estate Co Ltd, Mitsui Fudosan Co, Unibail-Rodamco Se, HongKong Land Holdings Ltd, Sumitomo Realty & Development, Hang Lung Properties Ltd, and Wharf Holdings Ltd.


SPDR Dow Jones Global Real Estate
SPDR Dow Jones Global Real Estate

3. SPDR Dow Jones Global Real Estate

SPDR Dow Jones Global Real Estate investment seeks to track, net of expenses, the Dow Jones Global Select Real Estate Securities Index. This ETF invests most of its assets (>80%) in securities that comprise the index. The index is a float adjusted market capitalization index designed to measure the performance of publicly traded global real estate securities that represent the ownership and operation of commercial or residential real estate. The total expense ratio is 0.50% per year.

With total asset of 150 millions, SPDR Dow Jones Global Real Estate ETF is smaller than the prevous two ETFs. When investor or trader wants to trade this ETF, it is recommended to use Limit Order.

The primary portfolio consists of large blend US and Foreign stocks or equities. As of December 2010, the top 5 REIT sectors of fund are Real Estate Operating Company, Regional Malls, Diversified REITs, Office REITS and Apartment REITs. The top 5 countries include United States, Japan, Australia, Hong Kong and United Kingdom. Top 10 largest equity holdings for this fund include Simon Property Group Inc, Westfield Group, Unibail-Rodamco Se, Mitsui Fudosan Co, Brookfield Asset Management Co, Vonaldo Realty Trust, Equity Residential, Public Sotrage, Boston Properties Inc, and HCP Inc.


4. iShares S&P Developed ex-US Property Index

iShares S&P Developed ex-US Property Index is also part of ishares ETF lineup. This ETF seeks to track the S&P/Citigroup BMI World ex-U.S. Property index before net expense. The fund invests > 90% of assets in securities that comprise the index. The index is a free-float market capitalization weighted index that defines and measures the investable universe of publicly traded real estate companies domiciled in developed countries outside of the United States. These companies are engaged in real estate related activities, such as management, property ownership, development, rental and investment. The total expense ratio is 0.50% per year. It also has a decent yield of 4.85% per year.

The primary portfolio consists of large blend foreign stocks or equities. As of December 2010, the top 5 REIT sectors of fund are Real Estate Holding & Development, Retails REITs, Industrial and Office REIT, Residential REITs, Diversified REITs, and Diversified Industrials. The top 6 countries include Japan, Hong Kong, Australia, Singapore, United Kingdom, and France. Top 10 largest equity holdings for this fund include Sun Hung Kai Properties, Mitsubishi Estate Co Ltd, Westfield Group, Cheung Kong Holdings Ltd, Unibail-Rodamco Se, Mitsui Fudosan Co, Sumitomo Realty & Development, Hang Lung Properties Ltd, and Capitaland Ltd.


5. WisdomTree International Real Estate

WisdomTree International Real Estate investment seeks to track the price and yield performance, before fees and expenses, of the WisdomTree International Real Estate Sector index. The fund uses a passive management investment approach designed to track the performance of the WisdomTree International Real Estate index. It attempts to invest most of its assets in the stocks that make up the index. The fund generally uses a representative sampling strategy to achieve its investment objective. The total expense ratio is 0.58% per year. It also has a decent yield of 9.18% per year.

The primary portfolio consists of large blend foreign stocks or equities. As of December 2010, the top 6 countries include Hong Kong, Australia, Japan, France, Singapore, and United Kingdom. Top 10 largest equity holdings for this fund include Westfield Group, Cheung Kong Holdings Ltd, Sun Hung Kai Properties, Gecina SA, Stockland, Klepierre, Wharf Holdings Ltd, Swire Pacific Ltd, British Land Co PLC, and Hang Lung Properties Ltd.


Brokerages for buying ETFs

Since ETF is traded like a stock, investors and traders will need a brokerage to buy ETFs such as:

  • TradeKing – Investor and trader can trade stock and ETF for $4.95 per trade. You can also trade mutual funds.
  • SogoTrade - Customer can trade stock online and ETF for $3.00 per trade.
  • Marsco – Traders can buy stock and etf online for $3.95 per trade
  • Lightspeed Trading – One of the cheapest brokerage with only $0.00395 per shares with $1.00 minimum

Disclosure: I have no affiliation with any of these ETFs. I also have no position in any of these ETFs. Please do your own research for additional details. Please trade and invest responsibly. Past Performance is No Guarantee of Future Results.


Global REIT ETF Perfomance

(click column header to sort results)
No  
Fund Name  
Ticker  
Total Asset (Bil)  
3 Month  
1 Yr  
3 Yr  
1
SPDR Dow Jones Intl Real Estate
RWX
1.4
24.53%
13.06%
-12.14%
2
iShares FTSE EPRA/NAREIT Dev RE ex-US
IFGL
0.39
22.64%
12.26%
N/A
3
SPDR Dow Jones Global Real Estate
RWO
0.15
18.84%
18.23%
N/A
4
iShares S&P Dev ex-US Property Index
WPS
0.14
23.56%
11.12%
-11.41%
5
WisdomTree International Real Estate
DRW
0.12
24.63%
11.16%
-12.64%
6
Guggenheim China Real Estate
TAO
0.07
21.08%
12.29%
N/A
7
First Trust FTSE EN Dev Mkts Rel Est Idx
FFR
0.06
20.20%
17.07%
-10.58%
8
Cohen & Steers Global Realty Majors ETF
GRI
0.04
18.78%
18.49%
N/A
9
iShares FTSE EPRA/NAREIT Dev Asia Idx
IFAS
0.03
21.12%
11.63%
N/A
10
iShares FTSE EPRA/NAREIT Dev EU Idx
IFEU
0.01
29.09%
7.10%
N/A

More by this Author


2 comments

LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas

Merry Christmas friend, trying to catch up on months of reading. The way you present this financial information is awesome. Shared, voted ups. :0)


chan0512 profile image

chan0512 5 years ago from Camarillo, CA Author

Thanks Lilly! Merry Christmas and Happy holidays to you as well! Thanks for your kind words!

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working