The Best Global REIT ETF

The Best Global REIT ETF

A Seeking Alpha Contribution

Summary

  • RWO is the Sun of the global REIT ETF market, with smaller funds in its orbit.
  • REET is the cheapest and highest yielding fund.
  • FFR is the most diverse offering and offers a solid yield, but it is also the most expensive.

 There are several global REIT ETFs for investors to choose from, but these four are the best choices: iShares Global REIT ETF (NYSEARCA:REET); SPDR DJ Wilshire Global Real Estate ETF (NYSEARCA:RWO); ALPS Cohen & Steers Global Realty Majors ETF (NYSEARCA:GRI); and First Trust FTSE EPRA/NAREIT Global Real Estate Index ETF (NYSEARCA:FFR). Of these four funds, RWO dominates the market, accounting for 90 percent of the combined assets and trading volumes of the four funds.

RWO Index & Strategy

RWO tracks the Dow Jones Global Select Real Estate Securities Index. The index rules for inclusion require companies to be an owner and operator of commercial or residential real estate, with at least 75 percent of total revenue coming from real estate. The minimum market cap is $200 million.

The index does not include mortgage REITs, net-lease REITs, finance companies, homebuilders, holders of unimproved land, hybrid REITs, or timber REITs. This ETF is almost the same as the SPDR Dow Jones International Real Estate ETF (NYSEARCA:RWX), except RWO has 58 percent of assets in the U.S. The rest of the portfolio is the same as RWX, reduced proportionally to make room for those U.S. assets…. To Continue Reading Please, Click Here.

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