Today we speak about the presence of upside December call buyers in the second largest real estate ETF, IYR (iShares U.S. Real Estate, Expense Ratio 0.43%), and this presents the opportunity to discuss several of the smallest funds in the greater “REIT” space that likely evade investor attention.
PRME (First Trust Heitman Global Prime Real Estate, Expense Ratio 0.95%), which debuted nearly a year ago in November of 2015, seems to trade by appointment, with only about 3,200 shares traded daily, but it did see a notable uptick in volume with a >20,000 share day earlier this week. The fund itself is the smallest Real Estate ETF in the U.S. listed landscape with only about $1 million in assets under management, which appears to be seed capital.
According to fund literature, PRME is an actively managed ETF with an “objective to provide long-term total return”:
“Under normal market conditions, the fund will seek to achieve its investment objective by investing at least 80% of its net assets (including investment borrowings) in U.S. and non-U.S. exchange-traded real estate securities, which includes real estate investment trusts, real estate operating companies and common stocks or depositary receipts of companies primarily engaged in the real estate industry.”
LARE (Tierra XP Latin America Real Estate, Expense Ratio 0.79%) debuted a bit after PRME last year, in early December of 2015 in fact, and this fund presently has about $3 million in assets under management. The fund comes from ETF Managers Group, whom presently have three other funds listed as well.
LARE tracks the “Solactive Latin America Real Estate Index” which “is comprised of 61 locally-listed equities ranked overall by market capitalization, dividend yield and liquidity.”
Here are some other lesser known ETF alternatives in this space, as ranked by AUM:
- WREI (Guggenheim Wilshire U.S. REIT, Expense Ratio 0.33%, $23.2 million in AUM),
- PSR (PowerShares Active U.S. Real Estate, Expense Ratio 0.80%, $26.7 million in AUM),
- SRET (Global X SuperDividend REIT, Expense Ratio 0.58%, $32.5 million in AUM),
- EWRE (Guggenheim S&P 500 Equal Weight Real Estate, Expense Ratio 0.40%, $41.9 million in AUM), and
- FTY (iShares Real Estate 50, Expense Ratio 0.48%, $72.5 million in AUM).
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.