ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Alternatives Channel
  2. Add Actively Managed REIT Exposure to Your Portfolio
Alternatives Channel
Share

Add Actively Managed REIT Exposure to Your Portfolio

Elle CarusoApr 22, 2022
2022-04-22

Inflation has become a greater threat to portfolios than it was in the past decade, rising higher than policy makers anticipated, leaving investors looking for optimal ways to protect their returns and hedge against inflation.

With equities at all-time highs, and bond yields trending up from all-time lows, it’s the ideal time to consider an allocation to global real estate. Global REIT performance hasn’t rebounded like traditional stock markets, and, like other asset classes, large drawdowns have led to higher future return potential.

The Bureau of Labor Statistics’ Consumer Price Index (CPI) increased by 8.5% in March compared to one year prior, marking the fastest annual jump since 1981, eclipsing the previous 40-year record high rate of 7.9% in February, the U.S. Bureau of Labor Statistics reported last week.

Real estate, in its various forms, historically has provided a hedge against inflation and rising interest rates. Since 1972, REITs have delivered attractive returns in a wide range of inflationary environments, with the ability to offset increased costs by pushing rents higher as demand for space grows, according to Virtus.

In periods of moderate inflation, REIT dividends have historically more than compensated for the higher price returns on traditional stocks, while in periods of high inflation, strong income returns offset falling REIT prices, Virtus wrote

Adding exposure to a diverse array of global real estate markets with strategies such as the Virtus Duff & Phelps Global Real Estate Securities Fund VGISX has provided lower correlations and lower beta to traditional stocks, and, as part of a balanced portfolio, has historically lowered risk and enhanced returns, according to Virtus.

By focusing on rental property companies with contractual revenues, the team managing VGISX has amassed a compelling track record of risk-adjusted performance driven by actively managed stock selection.

Active managers have the flexibility to benefit from market dislocations, making active management a key approach to gaining exposure to real estate. 

VGISX is actively managed by Geoffrey Dybas and Frank Haggerty, who have been co-PMs since the fund’s inception in 2009. Dybas and Haggerty are supported by an experienced team with exceptional continuity, applying a disciplined investment process focused on owner/operators of high-quality listed real estate.

The average Morningstar Rating of the strategies Dybas and Haggerty currently manage is 4.3 stars, demonstrating impressive risk-adjusted performance. 

Dybas and Haggerty average 22 years of portfolio management experience and manage five investment vehicles together, with a Bronze asset-weighted average combined Morningstar Analyst and Quantitative Rating, indicating the potential to deliver positive alpha in aggregate, according to Morningstar. 

For more news, information, and strategy, visit the Alternatives Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X