REITBull

Housing: Not Cheap Enough?

billddrummer,

Here is why I ask the question about IYR:

Top Holdings in IYR as of 1/7/09
6.71% SIMON PROPERTY GROUP INC
5.23% PUBLIC STORAGE
4.98% ANNALY CAPITAL MANAGEMENT IN
4.96% VORNADO REALTY TRUST
4.33% EQUITY RESIDENTIAL
3.73% BOSTON PROPERTIES INC
3.69% HCP INC
3.21% PLUM CREEK TIMBER CO
2.72% KIMCO REALTY CORP
2.67% AVALONBAY COMMUNITIES INC

Top Sectors as of 1/07/09:
22.89% Specialty REITs
19.69% Industrial & Office REITs
19.58% Retail REITs
14.40% Residential REITs
6.96% Diversified REITs
6.85% Mortgage REITs
3.95% Hotel & Lodging REITs
2.75% Real Estate Holding & Development
1.26% Real Estate Services
0.03% S-T Securities
(source iShares website)

There certainly is some exposure to residential real estate, however, the majority of the residential real estate is apartment REITs such as Avalonbay and Equity Residential. I only point this out because the dynamics in the commercial real estate market are very different than those in residential. Not a big deal, just thought I'd point it out.