It’s inevitable that fixed income investors will need to look for global options in search of yield, so why not opt for an ETF that does all of that in one fund: the Global X Super Dividend REIT ETF (SRET ).
The current market environment is a tricky one to navigate for the bond investor. It’s difficult to stay locked into debt when yields are rising globally as inflation heats up around the world.
“Higher oil – and commodity prices in general in terms of gas and oil – are feeding through into higher bond yields, because it has an inflationary implication,” said Mike Bell, global market strategist at JP Morgan Asset Management.
“The market is looking at that and thinking ‘is there a scenario in which inflation that everyone has said might be transitory, being a little bit more persistent?’”
The Time Is REIT for SRET
One way to keep inflation from eroding fixed income is via the yield derived from real estate investment trusts (REITs). REITS are entities formed for the sole purpose of investing in real estate using pooled capital to purchase properties.
REITs also have their own inherent advantages. Unlike actually holding real estate assets, SRET gives investors the ability to unload shares quickly — or, in financial vernacular, it can offer the liquidity that gives them mobility with their capital that real estate itself does not.
SRET seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global SuperDividend REIT Index. The underlying index tracks the performance of REITs that rank among the highest-yielding REITs globally, as determined by Solactive AG, the provider of the underlying index.
More about the index:
- MSCI ACWI Index captures large- and mid-cap representation across 23 developed markets (DM) and 24 emerging markets (EM) countries.
- The index covers approximately 85% of the global investable equity opportunity set. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK, and the US. EM countries include: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates.
Furthermore, SRET gives investors more diversification by looking at opportunities around the globe as opposed to staying within domestic borders. The fund screens for only the highest-yielding opportunities no matter what part of the globe that yield happens to be in.
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