Alternative Investment: Outlook On Real Estate ETFs; Is The Worst Over?
Real estate industry leaders concur that some of its sectors may have bottomed.
A report by Globe St. com quoted a survey result by RCLCO Real Estate Advisors. The survey said that real estate industry leaders thought the worst of COVID-driven real estate market declines sustained during the first six months this year may be behind us. (ETF Trends)
The RCLCO Mid-Year 2020 Sentiment Survey
The key observations from the survey are:
- the worst of the declines are over, though some sectors still face headwinds
- only 16% of industry leaders think that real estate markets will be “significantly” worse in the coming year
- land, multifamily rental, active adult, and for-sale residential sectors have bottomed out
- second home/resort and seniors housing are still in a decided decline
- the hospitality sector is at or near the bottom
- luxury and resort hotels are either in full decline or are bottoming out
- the retail sector is in full decline
- office market still in decline
- COVID 19 has given a bullish thrust to industrial spaces such as cold storage and last-mile warehousing due to demand for deliveries
- except for industrial spaces, every major real estate sector jumped from expansion to contraction in the first half of 2020
The silver lining according to the survey is that respondents expect conditions to improve significantly over the next 12 months.
Real Estate ETFs
Given that industry leaders are cautiously bullish as per RCLCO, the following ETFs offer real estate exposure.
|Symbol||Name of ETF||AUM – July 7 – USD||YTD|
|VNQ||Vanguard Real Estate Index Fund||$28,020,331.65||-14.04%|
|SCHH||Schwab US REIT ETF||$4,233,072.46||-22.83%|
|XLRE||Real Estate Select Sector SPDR Fund||$4,028,072.74||-7.91%|
|IYR||iShares U.S. Real Estate ETF||$2,976,170.15||-14.04%|
Related Story: Kayne Anderson Raising $2 Billion for Sixth Fund
Latest Alternative Investment News
Speaking to CNBC on Power Lunch, Glenn Kelman, CEO of real estate brokerage Redfin (NASDAQ: RDFN), said he expected the current boom conditions in the housing market to last well…
Paul Tudor Jones made a splash in May when he disclosed a bitcoin investment and called the cryptocurrency the fastest horse in the race against inflation. On Thursday, he was…
LendInvest, a leading property finance platform that offers short-term, development and buy-to-let mortgages to intermediaries, landlords, and developers across the UK reported a record quarter in Q3 for property bridge…
Analysts at Morgan Stanley (NYSE: MS) on Thursday doubled their estimated value of SpaceX, Elon Musk’s startup focused on launch rockets, satellite broadband, and (in the future) point-to-point space travel….