The COVID-19 pandemic has certainly changed the market landscape for real estate as more companies shift towards the work-from-home dynamic. Yet 2021 could being a comeback for real estate, adding to the case of the Invesco S&P 500® Equal Wt Real Estt ETF (EWRE ).
EWRE seeks to track the investment results (before fees and expenses) of the S&P 500® Equal Weight Real Estate Index (the “underlying index”). The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index.
The underlying index is composed of all of the components of the S&P 500® Real Estate Index, an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the real estate sector, as defined according to the Global Industry Classification Standard (“GICS”). With an equal weight index, investors get a nice balance of real estate names without one particular stock dominating the rest.
“An equal-weighted index is a stock market index – comprised of a group of publicly traded companies – that invests an equal amount of money in the stock of each company that makes up the index. Thus, the performance of each company’s stock carries equal importance in determining the total value of the index,” a Corporate Finance Institute article said.
“Equal-weighted indexes are more diversified than market capitalization-weighted indexes, and, therefore, may carry less risk,” the article continued. “Equal-weighted funds focus on value investing, which is considered by many market analysts and investors to be a superior investing strategy.”
New York's Real Estate Progress
New York is a prime example of a real estate comeback.
“Although the flight from the Big Apple, increasing crime, and possible MTA cuts are dominating media coverage, less noticed is a wealth of new projects that will make the town newly appealing — a multitude of splendid apartment buildings, amenity-rich office towers, museums, restaurants, and waterfront parks in all of the five boroughs within two years or less,” a New York Post article said.
“A new JP Morgan Chase headquarters and the nearly completed 425 Park Avenue tower promise to restore the boulevard’s commercial luster,” the article added further. “The dead-seeming zone between Madison Square Garden and Hudson Yards won’t be that way for long: The new Moynihan Train Hall inside the beautifully restored Farley Post Office building between Eighth and Ninth avenues opens by Dec. 31. At the work-in-progress Manhattan West complex between Ninth and Tenth avenues, a giant food hall opens in early 2021, followed in the summer by a public plaza, and eateries including a two-level restaurant from Danny Meyer.”
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