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Vanguard REIT Index ETF (VNQ)

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  • Wed, Jan. 21, 3:14 PM
    • Equity REITs had a nice run after bond yields peaked last year and began declining, but, says a now-cautious John Authers from the FT, that rally has turned into a stampede. And while the U.S. has led the way, U.K., European, and global REIT indexes have also had big gains.
    • Since October, the S&P 500 REITs index is up 19% vs. 1.4% for the S&P 500, and a 22.5% loss for the Alerian index of MLPs.
    • Valuation has now become a concern, with every REIT sector covered by SNL Securities trading at a premium to NAV (not the mortgage REITs though). Healthcare REITs - HCP, MPW, HTA, UHT, LTC, SBRA, OHI, HCN come to mind - are at a 25% premium.
    • SNL's Jason Lail dismissed some concerns, noting REITs trade at a 12.% premium to NAV, well within the 20% above and below NAV they typically range between. Also, fundamentals remain sound, with supply still constricted in many areas.
    • JPMorgan's Jason Ko notes pockets of value, particularly office REITs which trade a minimal premium. Boston Properties (BXP -0.1%) is a particular favorite. Others in the sector include: EQC, WRE, CSG, FPO, HIW.
    • Simon Property (SPG +0.2%) is Ko's biggest holding as mall bankruptcies and chain closings should leave the survivors stronger. His 2nd-largest holding is industrial player ProLogis (PLD +0.2%).
    • ETFs: IYR, VNQ, WPS, VNQI, DRN, RWX, URE, SRS, ICF, SCHH, RWR, RWO, IFGL, KBWY, DRV, DRW, REK, FRI, GRI, IFEU, FTY, FFR, RWXL, PSR, IFNA, WREI, REET
    | 18 Comments
  • Tue, Jan. 13, 9:15 AM
    • Aiming to replicate the benefits of owning physical real estate without the volatility of individual REITs or those weekend phone calls about a heater not working, BlackRock (NYSE:BLK) launches the iShares MSCI Target U.S. Real Estate UCITS ETF (OTCQB:USPR).
    • The fund will own a mix of publicly traded real estate companies in the U.S. as well as TIPs. "The goal was to create a new benchmark that would behave like physical real estate, but would be more liquid," says Tom Fekete, head of product development for iShares.
    • A perusal of top holdings shows mall operator Simon Property, self-storage king Public Storage, senior housing company Health Care REIT, and apartment owner Equity Residential.
    • Related ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI
    | 11 Comments
  • Mon, Jan. 12, 2:40 PM
    • The 10-year Treasury  yield is down all the way to 1.91% and the 30-year earlier dropped to 2.47% amid a slumping stock market and WTI crude oil plummeting another 4.3% to $46.23 per barrel. Equity REITs, meanwhile, continue a big start to the year.
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI
    • A sampling of individual names: Realty Income (O +0.9%), Omega Healthcare (OHI +1%), National Health Investors (NHI +1.7%), LTC Properties (LTC +1.8%), Camden Property Trust (CPT +1.3%), CBL & Associates (CBL +2.2%), Regency Centers (REG +1.2%), CubeSmart (CUBE +1.5%), Washington Real Estate Trust (WRE +0.9%), American Campus Communities (ACC +0.7%).
    | 11 Comments
  • Tue, Jan. 6, 2:25 PM
    • The 10-year Treasury yield plunging all the way to 1.94% makes the dividends on these players even more attractive.
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI
    • Individual names: National Retail Properties (NNN +2.3%), Spirit Realty (SRC +3.2%), Health Care REIT (HCN +1.6%), Ventas (VTR +2.1%), HCP (HCP +2.3%), AvalonBay (AVB +1.4%), Essex Property Trust (ESS +1.2%), Brixmor Property (BRX +1.8%), Macerich (MAC +0.9%), Retail Properties of America (RPAI +1.2%), Tanger Factory (SKT +1.3%), Public Storage (PSA +1.6%), Sovran Self Storage (SSS +1.9%),
    | 1 Comment
  • Dec. 31, 2014, 2:25 AM
    • Real-estate investment trusts were among the hottest stocks of the year, producing a total return of 32.3%, including dividends, according to the FTSE Nareit Equity REITs Index.
    • Boosted by low interest rates and an improving economy, the sector has climbed this year to its biggest gains in nearly a decade.
    • Analysts are predicting REIT shares to continue to perform well in 2015, as a stronger economy and increased M&A activity drown out the risk of possible rate rises.
    • With its shares rising 68.3% this year, the top-performing REIT in 2014 was Winthrop Realty Trust (NYSE:FUR).
    • Related tickers: ARCP, DEI, DCT, PEB, SHO, EXR, FRT, EPR, MPW, NYRT, MAC, AVIV, CPT, EQR , PKY, MAC, SKT, WRI
    • ETFs: IYR, VNQ, DRN, URE, SRS, RWR, SCHH, ICF, DRV, KBWY, REK, FRI, FTY, PSR, WREI
    | 3 Comments
  • Dec. 19, 2014, 6:29 AM
    | Comment!
  • Dec. 5, 2014, 11:44 AM
    • Equity REITs posted a 2.34% total return in November, according to NAREIT, slower than October's fast pace, but in line with the broader market. Year-to-date, REITs have now returned 26.44% vs. the S&P 500's 13.98%.
    • For November, infrastructure REITs (7.1%) and regional mall REITs (3.25%) were the best-performing sectors. Both are among the stronger gainers for the year as well.
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, ROOF, KBWY, DRV, REK, FRI, FTY, PSR, WREI
    | 1 Comment
  • Dec. 1, 2014, 1:06 PM
    | 8 Comments
  • Nov. 18, 2014, 8:53 PM
    | 2 Comments
  • Nov. 12, 2014, 3:14 PM
    • REITs - particularly those focused on retail properties - have been big winners since the financial crisis, with the S&P 1500 Retail REIT industry group's near-500% total return since the March 2009 bottom double that of the broad market. Among the members of that index are SPG, MAC, and NNN.
    • In 2014, the MSCI U.S. REIT index is up 26% vs. 10% for the S&P 500.
    • "We're turning over rocks for opportunities, but it's clear that REITs are not cheap," says one fund manager. Among the risks, naturally, are higher rates which could boost the attractiveness of cash and bonds vs. the dividend yield of REITs (now averaging 3.5%). The group is also substantially more levered than most others, so higher rates at some point mean higher borrowing costs.
    • ETFs: IYR, VNQ, DRN, URE, SRS, SCHH, RWR, ICF, DRV, KBWY, REK, FRI, FTY, PSR, FNIO, WREI
    | 8 Comments
  • Nov. 11, 2014, 7:57 AM
    • Acknowledging that the inclusion of REITs in the financial sector just isn't cutting it anymore, S&P Dow Jones Indices and MSCI announce the creation of a new Real Estate sector for their indices. FInancials will be redefined to exclude real estate.
    • MSCI's Remy Briand: "Investors told us that there are significant differences between public Real Estate and Financial companies and therefore Real Estate deserves a dedicated GICS Sector."
    • The proposed implementation date is after the close on August 31, 2016, but feedback from market participants could change this.
    • Source: Press release
    • ETFs: IYR, VNQ, DRN, URE, SRS, RWR, SCHH, ICF, DRV, KBWY, REK, FRI, FTY, PSR, WREI
    | Comment!
  • Oct. 31, 2014, 12:49 PM
    • The FTSE NAREIT All REIT Index climbed 6.94% through October 29 vs. the S&P 500's return of 0.62%. Strong earnings reports from REITs helped, but maybe helping more was a steep drop in interest rates amid the broad market's major swoon during October's first two weeks.
    • Leading the way for REITs were manufactured homes up 10.19%, followed by industrial (9.79%), healthcare (9.77%), and shopping centers (9.43%).
    • Among the REIT laggers were timber (up 4.42%), mortgage REITs (3.71%), and infrastructure (1.89%).
    • ETFs: IYR, VNQ, DRN, URE, REZ, SRS, RWR, SCHH, ICF, ROOF, DRV, KBWY, RTL, REK, FRI, FTY, PSR, FNIO, IFNA, GQRE, WREI
    | 3 Comments
  • Oct. 13, 2014, 4:19 PM
    • Both equity and mortgage REITs saw plenty of buying as nearly all of the rest of the market was lit up bright red, and Treasury ETFs signaled a sharp drop in yields when government bonds reopen for trade tomorrow (closed this session for Columbus Day).
    • A sampling of equity names: Senior Housing Properties (SNH +1.2%), Medical Properties Trust (MPW +1.4%), Gramercy Property Trust (GPT +1.7%), Equity Residential (EQR +0.7%), Inland Real Estate (IRC +0.9%), Sovran Self Storage (SSS +1.1%), Highwoods Properties Trust (HIW +1%).
    • One equity REIT sector in the red along with the rest of the market is lodging amid worsening Ebola fears: Ashford Hospitality Trust (AHT -2.9%), Sunshine Hotel Investors (SHO -1.4%), LaSalle Hotel Properties (LHO -1.5%), Summit Hotel Properties (INN -1.5%).
    • Mortgage REITs: American Capital Agency (AGNC +1.4%), CYS Investments (CYS +2.2%), Invesco (IVR +1.1%), American Capital Mortgage (MTGE +1.5%), Western Asset (WMC +1.1%).
    • ETFs: IYR, VNQ, REM, MORL, MORT, DRN, URE, REZ, SRS, RWR, SCHH, ICF, ROOF, DRV, KBWY, RTL, REK, FRI, FTY, PSR, IFNA, FNIO, WREI
    | 5 Comments
  • Oct. 10, 2014, 11:42 AM
    • The FTSE NAREIT All REITs Index gained 13.08 during the year's first nine months, and had a dividend yield of 4.31% as of September 30. The S&P 500 had a total return of 8.34% over the same period, and a dividend yield of 2.06%.
    • The big YTD performance comes even after a 2.63% decline in the just-ended Q3 (vs. the S&P's 1.13% decline).
    • Apartment REITs (EQR, AVB, ESS, PPS, UDR, to name a few) have been the biggest winner so far this year, with total return of 20.29% In second place at 16.76% are self-storage REITs (PSA, SSS, CUBE, EXR).
    • Mortgage REITs (REM, MORT, MORL) had a total return of 12.69%.
    • Broad REIT ETFs: IYR, VNQ, WPS, VNQI, DRN, RWX, URE, SRS, RWR, SCHH, ICF, RWO, IFGL, DRV, KBWY, DRW, REK, FRI, GRI, FTY, FFR, RWXL, PSR, WREI, REET
    | 2 Comments
  • Oct. 9, 2014, 12:21 PM
    • A check of 900 corporate and public defined benefit plans between 1998 and 2011 found listed equity REITs - with an average annual net return of 11.31% - edged out private equity (11.1%) as offering the highest net returns of any asset class, according to a soon-to-be-released report from CEM Benchmarking.
    • Coming in third were real assets other than real estate - infrastructure, commodities, natural resources - at 9.85%.
    • Why start in 1998? That's when CEM first began separating REITs from stocks in its surveys.
    • Costs are of key import. The average fee for REITs over the period was 51.6 basis points vs. 238.3 bps for P-E, and 102.6 bps for "other" real assets. U.S. broad fixed income had the lowest costs - just 17.3 bps - but produced an average net return of just 6.56%.
    • ETFs: IYR, VNQ, WPS, VNQI, DRN, RWX, URE, SRS, RWR, SCHH, ICF, RWO, IFGL, DRV, KBWY, DRW, REK, FRI, GRI, FTY, FFR, RWXL, PSR, WREI, REET
    | 3 Comments
  • Oct. 3, 2014, 2:38 PM
    • A big year for REITs took a pause in September, helped along by a strong rise in interest rates for most of the month. The FTSE NAREIT Index fell 5.63% last month, well below the S&P 500's 1.4% decline.
    • Infrastructure REITs were the best-performing REIT sector for the third straight month, falling 2.11%. The best-performing sector in 2014 - up 20.29% - apartment REITs had a particularly tough September, falling 7.51%.
    • Year-to-date, the REIT sector has returned 13.08% vs. the S&P 500's 6.6% gain.
    • ETFs: IYR, VNQ, DRN, URE, REZ, SRS, RWR, SCHH, ICF, ROOF, DRV, KBWY, RTL, REK, FRI, FTY, PSR, IFNA, FNIO, WREI
    | Comment!
VNQ vs. ETF Alternatives
VNQ Description
Vanguard REIT ETF seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of a benchmark index that measures the performance of publicly traded equity REITs.
See more details on sponsor's website
Country: United States
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