REIT ETF ishares funds
These etf investments allow
participate on real estate markets
Reit ETFs are popular vehicles for active traders and investors. These shares make nice short and mid term moves, which can be used by traders and active investors to generates profits.They can also be used by longer term investors for participation on performance of real estate markets.
What are Reit ETFs ?
Real estate investment trusts (REITs) are companies that finance, own and/or operate real estate properties. US Federal legislation, developed in 1960, allowed for the creation of these funds with the goal of providing all investors access to the real estate market - once limited to large institutions. There are three main groups of these companies: - Equity trusts own and operate real estate properties
- Mortgage trusts provide real estate financing by issuing mortgages or acquiring loans and mortgage-backed securities
- Hybrid trusts are combinations of two goups above
Company must these have these qualifications to be considered as real estate investment trust company: - comprise at least 75% of total assets in real estate
- derive at least 75% of gross income from real property sources (i.e. rental and property sales) or interest from mortgages on real property
- distribute annually at least 90% of ordinary taxable income to shareholders in the form of dividends
REIT ETF Shares I use
The Equity groups could be represented by ICF - Cohen & Steers Realty Majors Index Fund
The Hybrid group can be represented by ishares etf fund IYR - Dow Jones U.S. Real Estate Index Fund
Mortage group is represented by MORT - Market Vectors® Mortgage fundThis is new fund just created these days (08/2011) and so there is no history in its shares which can be charted. So I generated chart of its index using my Bloomberg terminal.
International REIT ishares funds
All funds mentioned above are targeting US real estate market.There are also exchange traded funds issued by Ishares ETF provider targeting another real estate markets.Europe region is covered by IFEU ishares etf fund
Asia region is covered by IFAS Ishares fund
Very specific fund is created to track China Real Estate companies. It is TAO - Guggenheim China Real Estate ETF.
ETF Trading strategies
I use funds mentioned above as short term and mid term trading vehicles for my swing and position trading strategies. I have these shares in my
list of ETF
and I monitor this list for possible trading opportunities. My trading strategy is based on
relative strength analysis
and
chart pattern analysis.
I prepare my relative strength table which consists list of exchange traded funds with most relative strength and with biggest relative weakness. This table helps me to find best short term trading opportunities.
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