Real estate exposure can be had via exchange-traded funds (ETFs) without investors having to come property owners themselves. Furthermore, they can get international diversification in real estate via funds like the new Cambria Global Real Estate ETF BLDG) from Cambria Investments.
The fund joins 11 other Cambria ETFs managed using quantitative, rules-based strategies that span asset classes and include value, core, and tactical strategies.
“Cambria is focused on offering quantitative, rules-based strategies that are unique alternatives to what is already available in the ETF marketplace,” said Meb Faber, Cambria co-founder and CIO. “We view real estate as a core piece of the investment opportunity set, and BLDG offers investors global active exposure to real estate through a thoughtful, multi-factor approach focused on value, quality, and momentum. BLDG fits nicely with our firm’s mission of engineering ETFs that focus on absolute returns with low correlation to traditional assets.”
Right now, real estate is undergoing somewhat of a shift due to the Covid-19 pandemic. With more companies settling into the work-from-home dynamic, less office real estate space is needed and more homeowners are increasing their home office space.
ETF investors who want to take advantage of the forthcoming changes in real estate can look at the FlexShares Global Quality Real Estate Index Fund (GQRE ). The fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Global Quality Real Estate IndexSM. The index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to quality, value, and momentum factors relative to the Northern Trust Global Real Estate Index.
Another fund to check out is the Xtrackers International Real Estate ETF (HAUZ ), which seeks investment results that correspond generally to the performance of the iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index. iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index is a free-float capitalization-weighted index that provides exposure to publicly traded real estate securities in countries outside the United States, Pakistan, and Vietnam.
One more fund to look at is the Vanguard Real Estate ETF (VNQ ). VNQ seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of the MSCI US Investable Market Real Estate 25/50 Index that measures the performance of publicly traded equity REITs and other real estate-related investments.
