Real Estate ETFs-REITs

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Average returns in this Category	3 months return	6 months return	12 months return	YTD return

Real Estate ETFs-REITs	17.21%	41.61%	-5.74%	39.16%

Ticker SPY	Name	3 months return	6 months return	12 months return	YTD return

CGR	Claymore Global Real Estate ETF	-6.17%	20.63%	68.89%	137.5%

DRV	Direxion Daily Real Estate Bear 3x Shares (DRV)

DRN	Direxion Daily Real Estate Bull 3x Shares

RWR	Dow Jones Wilshire REIT ETF	25.84%	70.96%	-37.63%	8.49%

FRI	First Trust S&P REIT Index Fund	24.67%	62.91%	-34.16%	10.74%

XRE	iShares CDN REIT Sector Index Fund

IASP	iShares FTSE EPRA/NAREIT Asia Property Yield Fund	9%	9%	-3.83%	8%

IWDP	iShares FTSE EPRA/NAREIT Global Property Yield Fund	23.22%	12.59%	-18.66%	12.59%

IUKP	iShares FTSE EPRA/NAREIT UK Property Fund	33.62%	75.67%	-33.75%	12.11%

IUSP	iShares FTSE EPRA/NAREIT US Property Yield Fund	20.45%	-5.28%	-32.9%	-5.28%

FIO	iShares FTSE NAREIT Industrial/Office Index Fund	32.97%	65.2%	-41.57%	13.47%

REM	iShares FTSE NAREIT Mortgage REITs Index Fund	17.5%	26.54%	-17.97%	4.18%

FTY	iShares FTSE NAREIT Real Estate 50 Index Fund	24.39%	65.6%	-36.91%	8.71%

REZ	iShares FTSE NAREIT Residential Index Fund	21.67%	53.07%	-35.49%	0.89%

RTL	iShares FTSE NAREIT Retail Index Fund	27.05%	71.79%	-43.85%	13.18%

IPRP	iShares FTSE/EPRA European Property Index Fund	31.82%	46.81%	-0.87%	18.38%

VNQ	Vanguard REIT ETF	25.06%	70%	-35.63%	10.21%


	About Real Estate ETFs-REITs
Real Estate ETFs and REITs Overview and forecast The real estate market went down in flames during the US housing crisis, and the follow through hits on the credit market were the real crash. In some places, like the UK, the housing market literally collapsed. This is one of the toughest real estate markets in living memory. The Real Estate ETFs and REITs, therefore, have had some tough revaluations, including an almost vertical drop of nearly 50% in some cases during late 2008. To give some idea of the impact, many REITs invest in trusts themselves, and even those generally conservative, professional investments were severely down- valued. The real nuclear strike was in the US, overall, which went from bubble to used chewing gum as a result of the credit crunch, and the sudden severe tightening of lending policies, which hit both commercial and residential markets hard. Capital evaporated, and slight improvements haven't really impacted on the retail markets. The actual investment market has picked up, but it's still way below the glory days of high unit prices, as far as the Real Estate ETFs and REITs are concerned. Short term (6 months) The Real Estate ETFs and REITs, however, have become very popular, and have been rising in good margins for traders, since the big crash. This is an unusual market, because some heavy trading is apparent in these Real Estate ETFs and REITs prior to the crash, at much higher prices. After the big drop, they've been trading fiercely, in millions of units. The renovation has definitely generated interest, and these ETFs and REITs are popular traders. In the first six months of 2009, some of the Real Estate ETFs and REITs have a perfect V shape of fall and rise, meaning the traders are doing well out of the new price ranges. Medium term (2 years) Working on the assumption of a slow, groaning return to a more rational real estate market, which seems to be what's happening at cosmically slow speed, the Real Estate ETFs and REITs look quite good. An influx of new capital will expand their markets, and these funds and trusts are standard components of good investment spreads, by all normal models. However- A brief look at the charts for this class will tell anyone that performances have been quite different. Some are doing reasonably well, others aren't worth looking at, in terms of returns. The medium term in this market is likely to exacerbate those differences. Property investments, even in trusts, are very much management issues. Some are obviously not picking up, and others are looking pretty unconvincing, in terms of their 3- 6 month returns. The medium term is otherwise looking OK to good, with realistic upsides. Long term (5 years) It is reasonable to assume that from a position of 100% lousy, things will get better for the Real Estate ETFs and REITs. Demand in their market will return, however reluctantly, and with whatever levels of difficulty, because of natural growth. So real values will improve. Whether or not, compared to other forms of investment, this is necessarily good enough is another matter. A slow resurgence could mean very slow returns on the sector. That will drive out and annoy investors, because few if any traders are interested in non- performers, or purely growth based unit values. Traders are propping up the current market to a considerable extent, and if they move out of the sector, there will be bumps, perhaps big ones. Qualifiers to projections Some of the Real Estate ETFs and REITs are in very unstable markets, like Asia, others seem to be specialists who have managed to avoid meltdowns even in the UK market. This group operates in choppy areas of investment, and it's advisable to not only look the gift horse in the mouth, but ask to see some ID first, and to check both the teeth and the dentist. The global property market, residential and retail, hasn't improved much. The US property market is still essentially in a hole. Capital isn't forthcoming, and nor is capital policy, from the big lenders, which are still playing safe. That situation isn't likely to change in a hurry, until some real cashflow starts up in the US economy. Good traders as they are, what's needed to make the Real Estate ETFs and REITs really fire up is a definite, unambiguous improvement in the capital markets. It will happen, but caution is the way to go.

Last Updated on: 2010-01-14 02:03:40

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