Real Estate ETF

Investing in a real estate ETF is reasonably safe because of the ownership of these steel and stone buildings. But the downside is a bad occupancy rate due to an economic downturn. Empty offices and industrial buildings only cost money and they do not bring it in. 

Then there is the risk of outdated buildings, often occurring simultaneously with lower occupancy rates. Despite all these problems real estate companies have been performing considerably well after the credit crisis. Why is this? 

The reason is simple, the biggest enemy of real estate companies are high interest rates. With historical low interest rates the running cost has lowered considerably. If interest rates go up, occupancy rates must go up as well otherwise this market sector is in for a bad ride. 

Normally interest rates go up while economies are improving as well so it seems that there will be balance between occupancy and interest rates but there is a risk that this time it will not play out that way.

iShares STOXX Europe 600 Real Estate UCITS ETF

With this iShares Real Estate ETF you can invest in as many as 25 stocks of European real estate companies. This iShares Real Estate ETF is tracking the STOXX Europe 600 Real Estate index.

The largest company here is Unibail-Rodamco with a share of 15%. Vinovia is second with a 10% share. Third is Land Securities Group Reit with a share of 9%.

The UK is the country with the largest share here (40%). France comes in second with a 26% share. Third is Germany with a 20% share.

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iShares STOXX Europe 600 Real Estate UCITS ETF info:


ETF provider: iShares (BlackRock)

Ticker: EXI5

ISIN: DE000A0Q4R44

Currency: EURO

Exchange: Xetra Duitsland

This iShares STOXX Europe 600 Real Estate UCITS ETF has quotations on different exchanges and is known under several ticker symbols. As long as the ISIN number is identical you are dealing with the same ETF.