Equity: Global Real Estate
With 6 ETFs and over $3.64B in combined AUM, the Equity: Global Real Estate segment provides exposure to the 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 -31.78%. Meanwhile, the most popular ETF is the iShares Global REIT ETF (REET) with $1.61BB 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. REET 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 REITS Index.
ETF.com Efficiency Insight
The average efficiency score in the Equity: Global Real Estate segment is 82 out of 100, with the iShares Global REIT ETF(REET) 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 0.40% 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 -0.06%.
ETF.com Tradability Insight
The average tradability score in the Equity: Global Real Estate segment is 78 out of 100, with the Global X SuperDividend REIT ETF(SRET) obtaining the highest rating of 94 out of 100.
The iShares Global REIT ETF (REET) is the undisputed segment leader when it comes to liquidity. The fund trades 24.02M in daily average volume. Investors should also find ample liquidity in the SPDR Dow Jones Global Real Estate ETF (RWO), with $15.69M in daily dollar volume.
Use limit orders to trade funds such as the The Long-Term Care ETF(OLD), 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.