“Real Estate Rest Day”… quick and easy for a Sunday.
Real Estate Companies and Exchange Traded Funds
There is a list of Real Estate ETFS here:
The ones with a Canadian or UK flag next to them are traded on those non-US exchanges.
I’ve got a couple of “homebuilder” ETFs along with several Real Estate general ETFs on this chart. This is a 5 year chart with weekly tick marks, so will move a bit more slowly than most. Clearly after the crash, real estate is recovering.
ITB - Homebuilder ETF GRI - Cohen & Steers Global Realty Majors ETF XHB - Homebuilder ETF FTY - iShares FTSE NAREIT Real Estate 50 Index Fund REZ - iShares FTSE NAREIT Residential Index Fund RTL - iShares FTSE NAREIT Retail Index Fund VNQ - Vanguard REIT ETF SCHH - Schwab U.S. REIT ETF - new
Clearly after the crash, Real Estate is in a nice recovery. The part near us in time is also in a nice uptrend. Looks like time to be in Real Estate. In future versions of this posting I’ll look inside some of those ETFs to see just exactly what they hold. Until then, you can explore them yourself at finance.yahoo via the “holdings” option. For example:
shows it holding a nice mix of REITS:
Top 10 Holdings (49.6% of Total Assets) Company Symbol % Assets Simon Property Group, Inc. Comm SPG 11.42 Public Storage Common Stock PSA 5.21 Equity Residential Common Share EQR 4.93 ProLogis, Inc. Common Stock PLD 4.42 Ventas, Inc. Common Stock VTR 4.40 HCP, Inc. Common Stock HCP 4.28 Vornado Realty Trust Common Sto VNO 4.15 Boston Properties, Inc. Common BXP 4.09 AvalonBay Communities, Inc. Com AVB 3.60 Host Hotels & Resorts, Inc. Com HST 3.10 Get Quotes for Top 10 Holdings
One could then plot them on a chart at BigCharts.com and pick out particular favorites, check dividend levels of each, and Funds From Operations (that tells you if they can support that dividend).
Here is the 1 year daily tick mark chart of that first set of tickers:
A very nice “buy the dips” look to it. So “RSI near 50” or “MACD near zero, red to blue on top crossover” (or swap to using slow stochastic to time the trades).
You can see how buying the bottoms of those momentum downturns and selling the tops times a trade nicely in an uptrending ticker.
This is my usual “REITs Race” set of tickers. Just below it I’ve put the “top 10” from the SCHH ticker above.
PEI Pennsylvania Real Estate - Mall REIT VTR Ventas - sr. care, nursing homes, hospitals PSA Public Storage - junk storage units BXP Boston Properties - office REIT on BosWash corridor HCN Health Care REIT - extended care, senior care, medical offices HCP Health Care Properties - ex. care, senior living, Dr. offices PCL Plum Creek Timber - lumber and trees REIT SPY S & P 500 broad stock market benchmark RPT Ramco Mall REIT PLD Prologis - logistics
The tickers not already listed above are:
EQR - Equity Residential AVB - Avalon Bay Communities - a residential / apartment group. HST - Host motel and resorts. Was "Host Marriott" at one time.
Looks like a nice recovery / rise in real estate going on. Fed handing out nearly free money, it makes sense. “Buy the dips” and watch out for “failure to advance”.