Dividends4Life: Dividend Investing: Is This Real Estate ETF Smarter?

Dividend Investing: Is This Real Estate ETF Smarter?

Posted by D4L | Wednesday, September 02, 2015 | | 0 comments »

The prospect of rising rates has weighed on ETFs holding real estate investment trusts (REITS) in 2015. IShares U.S. Real Estate (ARCA:IYR) has fallen 0.2% year to date. But it's a top performer among sector equity exchange traded funds over the past 15 years, with an average annual 10% gain. Real estate is increasingly important to investment success for financial advisors and investors. It's seen as a distinct asset class, offering both capital appreciation and potential for income. That's why it's poised to become the 11th S&P sector next year. Currently, it's an industry group that falls within the financial sector.

Guggenheim S&P 500 Equal Weight Real Estate (ARCA:EWRE) offers a novel twist to investing in real estate. It's the first "smart beta" ETF among 19 products in the category. Most of its peers follow market-cap-weighted indexes, meaning larger stocks have a bigger weight in the portfolio. Smart beta products employ an alternative indexing method. In the case of EWRE, each of its 25 holdings gets an equal stake of assets. No one stock is more important than another.

Source: Investors.com

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