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VanEck Global Real Estate UCITS ETF

  • 100 real estate stocks
  • 73% REITs and 23% non-REITs
  • REIT ETF by VanEck is globally diversified
  • Semi-annual rebalancing
  • 0.25% total expense ratio

ETF Details

ETF Details

Basis-Ticker: TRET
ISIN: NL0009690239
TER: 0.25%
AUM: €296.8 M (as of 01-03-2024)
SFDR Classification: Article 8

Lower risk

Typically lower reward

Higher risk

Typically higher reward
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Risk of a REIT ETF: 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 REIT ETF?

The VanEck REIT ETF invests in REITs, which are tax transparent real estate investment vehicles.

What is a REIT?

A REIT is a legal vehicle specifically designed for investing in real estate. REITs were first introduced in the United States in 1960 in order to encourage individual investors to invest in real estate through equities or bonds. Before, typically only high net worth investors could afford to invest in real estate as it involved buying physical buildings.

What are the Characteristics of REITs?

Since 1960, more and more countries have introduced REIT regimes like the one in the US. Local characteristics differ, but most REIT regimes have the following in common:

How Many REITs Exist?

According to the European Real Estate Association (EPRA), there are 924 REITs as of March 2022, up from 791 in June 2017. In most regions, the number of REITs has increased in recent years as more countries have established REIT regimes. A notable exception has been North America, where mergers and acquisitions have resulted in a smaller number of larger REITs. Often, new REITs are created as a result of large real estate developers, such as Blackstone, floating part of their assets on a public stock exchanges.

Source: EPRA

The following table indicates per country when a REIT regime has been introduced:

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1960 United States
1969 Netherlands
1969 New Zealand
1969 Taiwan
1971 Australia
1993 Brazil
1993 Canada
1995 Belgium
1995 Turkey
1999 Greece
1999 Singapore
2000 Japan
2001 South Korea
2003 France
2003 Hong Kong
2005 Bulgaria
2005 Malaysia
2005 Thailand
2006 Dubai
2006 Israel
2007 Germany
2007 Italy
2007 United Kingdom
2008 Pakistan
2009 Costa Rica
2009 Finland
2009 Spain
2010 Mexico
2010 Philippines
2011 Hungary
2013 Ireland
2014 India
2014 Kenya
2015 Bahrain
2015 Vietnam
2016 Saudi Arabia
2018 Oman
2019 Portugal
2020 Sri Lanka
2021 China

Source: NAREIT, https://www.reit.com/sites/default/files/2022-02/2022-Global-REIT-Brochure.pdf

What Types of REIT ETFs Exist?

Roughly, there are two types of REIT ETF:

  • Sector-specific REIT ETFs
  • Broad REIT ETFs

Within the sector-specific REIT ETF variant, we distinguish the following:

  • Residential
  • Office
  • Industrials
  • Hotel
  • Healthcare
  • Retail 

Risks of a REIT ETF

Investing in this Fund can entail risks. These include:

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By investing too many assets in a single sector, a portfolio becomes excessively dependent on its underlying economic or political factors. This is a factor to consider before investing in a REIT ETF.

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There can be a mismatch between the currency of the investor and the currency of the investments, which can adversely impact value in if exchange rates fluctuate. This is a factor to take into account when making an investment in a REIT ETF.

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Real estate tends to be highly sensitive to rising rates, as property purchases are generally financed with debt. This is another risk factor of a REIT ETF.

Can I Invest in a REIT ETF?

In contrast to the US, there are no pure REIT ETFs available in Europe to our knowledge. European real estate ETFs all invest part of their portfolio invested in non-REIT real estate stocks because Europe’s fragmented nature means there is no homogenous REIT regime. This means there are fewer REITs and a pure REIT ETF would exclude some of the most interesting real estate stocks.

For instance, the VanEck Global Real Estate ETF is 73% invested in REITs, with the balance of 27% in straightforward real estate stocks1. Additionally, investing outside the REIT universe aids diversification of risk. Examples of non-REIT stocks in the VanEck Global Real Estate ETF are:

  • Vonovia SE, a large German residential real estate company. Under German law, residential real estate companies cannot qualify as REITs.
  • Mitsubishi Estate Co. Ltd., a diversified Japanese real estate company which also has a large real estate development business.
  • Castellum AB, a Swedish real estate investment company. There is no REIT regime in Sweden.

1 Data as of 10 June 2022.

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