What’s the longest-standing investment in the world? Arguably real estate. Since the Middle Ages, real estate has successfully provided investors with a regular income and protected their wealth.
Today, real estate has become the foundation of many investment portfolios. Take the past 20 years: investors holding real estate equities have received higher returns than the broader stock market (see chart below), while spreading their portfolio risks.
Listed real estate has delivered higher returns than the global equity market
Past performance is not a reliable indicator for future performance. Source: Bloomberg. Global equities are represented by the MSCI World Gross Return Index. Listed Real Estate by the GPR 250 Gross Return Index. Data starting at 1 January 2000.
Listed real estate has higher dividend yields than the global equity market
Source: Bloomberg. Global equities are represented by the MSCI World Gross Return Index. Listed Real Estate by the GPR 250 Gross Return Index. Data for the period 1/1/2012 – 18/10/2021.
Real estate is part of most institutional investors’ portfolios
Example: U.S. public pension funds holdings (2020)
Source: Pensions & Investments, U.S. public pension funds. As of 12 July 2021.
Only the biggest investors can afford to buy buildings and benefit from their attractive returns, especially the high income. But buying listed real estate through the VanEck Global Real Estate ETF brings listed real estate within the reach of all investors. It transforms real estate investing in the following ways:
The VanEck Global Real Estate UCITS ETF is diversified across 100 real estate companies from six real estate sectors.
Apartment buildings, flats, houses, student housing, manufactured homes, single-family homes
Office buildings, skyscrapers, office parks, in central business districts or suburban areas
Factories, industrial facilities, warehouses, distribution centers
Hotels, resorts, other leisure
Hospitals, elderly care
Shopping centers, individual stores, large (regional) shopping malls, outlet centers, grocery-anchored shopping centers and power centers that feature big box retailers
Lower risk: Typically lower reward
Higher risk: Typically higher reward
Because all or a portion of the Fund are being invested in securities denominated in foreign currencies, a Real Estate ETF’s exposure to foreign currencies and changes in the value of foreign currencies versus the base currency may result in reduced returns for the Fund, and the value of certain foreign currencies may be subject to a high degree of fluctuation.
A Real Estate ETF’s assets may be concentrated in one or more particular sectors or industries. The Fund may be subject to the risk that economic, political or other conditions that have a negative effect on the relevant sectors or industries will negatively impact the Fund's performance to a greater extent than if the Fund’s assets were invested in a wider variety of sectors or industries.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.