Equity: Global Real Estate
With 7 ETFs and over $3.77B in combined AUM, the Equity: Global Real Estate segment provides exposure to the Global space with a focus on Real Estate securities.
Year-to-date, the best-performing ETF in the segment is the FlexShares Global Quality Real Estate Index Fund (GQRE), with a total return of -4.89%. Meanwhile, the most popular ETF is the SPDR Dow Jones Global Real Estate ETF (RWO) with $2.54BB in assets under management.
Investors should take a look at the iShares Global REIT ETF (REET). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The iShares Global REIT ETF tracks a global, market-cap-weighted index of firms involved in the ownership and operation of real estate. REET has an expense ratio of 0.14% and tracks the FTSE EPRA/NAREIT Global REIT Index.
ETF.com Efficiency Insight
The average efficiency score in the Equity: Global Real Estate segment is 83 out of 100, with the Cohen & Steers Global Realty Majors ETF(GRI) obtaining the highest rating of 93 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.52% per year, with the iShares Global REIT ETF (REET) having the lowest expense ratio, charging investors 0.14% yearly.
Investors should look for funds with tight tracking, such as the FlexShares Global Quality Real Estate Index Fund (GQRE), with a 12-month median tracking difference of 0.05%.
ETF.com Tradability Insight
The average tradability score in the Equity: Global Real Estate segment is 66 out of 100, with the SPDR Dow Jones Global Real Estate ETF(RWO) obtaining the highest rating of 92 out of 100.
The SPDR Dow Jones Global Real Estate ETF (RWO) is the undisputed segment leader when it comes to liquidity. The fund trades 12.81M in daily average volume. Investors should also find ample liquidity in the iShares Global REIT ETF (REET), with $5.71M in daily dollar volume.
Use limit orders to trade funds such as the First Trust Heitman Global Prime Real Estate ETF(PRME), due to their double-digit market spreads.
ETF.com Fit Insight
The Thomson Reuters Global Real Estate has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to GQRE. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, SRET follows a Multi-factor strategy and obtains a low Fit score compared with our neutral benchmark.