Real Estate Stocks
ISIN: NL0009690239
- Real estate stocks are shares in companies that own or manage real estate
- They provide an accessible way for individual investors to get diversified exposure real estate
- VanEck Global Real Estate UCITS ETF allows you to invest in 100 of them through a single purchase
Risk: You may lose money up to the total loss of your investment due to Equity Market Risk and Industry Concentration Risk as described in the Main Risk Factors, KID and prospectus.
What is a Real Estate Stock?
This is a stock in a company that specializes in owning, developing or managing real estate. By investing in them, investors provide the capital used for developing or managing buildings, which supports the economy through shops, offices and warehouses, as well as providing people with houses to live in. Real estate stocks and ETFs enable investors to invest in diversified real estate portfolio – even if they only make small investments.
Five Advantages of Real Estate Stocks
These stocks offer a number of advantages compared to investing directly in physical real estate:
What are the Risks of These Stocks?
We see five main risks, which investors should take into consideration:
By investing in real estate, you invest in just a single sector. The real estate sector’s fortunes can be dependent on specific events (economical, political, demographical). Therefore, it is advisable to invest in these stocks as part of a broader portfolio.
Real estate stock might be denominated in another currency than the investor’s. If this currency depreciates, so too will the investor’s capital.
Real estate investments are typically partially financed by debt. If interest rates rise, this leads to higher financing costs and lower profits.
Changes in the political landscape resulting from political shifts, social unrest, riots, (civil) war or terrorism can, for instance, pose a risk for the Company.
The purchasing power of the invested euro, and by extension the value of the investment, can decrease as a result of monetary depreciation.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
What Types of Real Estate Stocks Exist?
We identify the following types:
Investing in Real Estate Stocks via Real Estate ETF
Selecting the right ones is not straightforward for many individual investors. In these cases, Real Estate ETF is a convenient alternative. The VanEck Global Real Estate UCITS ETF invests in a hundred of the most liquid real estate stocks worldwide.
VanEck Global Real Estate UCITS ETF
ISIN: NL0009690239
- 100 real estate stocks
- Globally diversified: 40 from North America, 30 from Asia Pacific and 30 from Europe, Middle East and Africa
- Diversification across real estate sectors
- Only 0.25% total expense ratio, currently one of the cheapest in its kind
- Weightings adjusted for ESG score
Risk indication: 6 out of 7
Lower risk: Typically lower reward
Higher risk: Typically higher reward
Why Invest in VanEck ETFs?
- Since we were founded in 1955 we have constantly been at the forefront of innovation, giving you access to new opportunities like gold funds, emerging market funds and ETFs.
- We are privately-held, allowing us to focus on our clients’ long-term interests.
- Our ETFs are transparent: they acquire the underlying securities (no synthetic replication). Securities are not lent out.*
