ETF Spotlight on SPDR Dow Jones REIT (NYSEArca: RWR), part of a weekly series.
Assets: $1 billion
Objective: RWR seeks to track the Dow Jones U.S. Select REIT Index.
Holdings: RWR’s index is made up of companies whose charters are the equity ownership and operation of commercial real estate. Each REIT in the index is weighted by its float-adjusted market capitalization, according to State Street’s fact sheet on the fund. The top companies in the fund are Simon Property Group (NYSE: SPG) and Public Storage (NYSE: PSA).
- This ETF delivers diverse exposure to the real estate investment trust (REIT) market, holding a mix of apartments (15.2%), health care (14%), regional malls (13%), office space (12.4%) and more.
- This fund was down 41.5% in 2008, but since the market’s low on March 9, it has climbed more than 105%.
- RWR’s expense ratio is 0.25%.
The Latest News
- The IRS recently came out with new rules that would simplify commercial real estate loan refinancing in order to stem the tide of defaults
- These new rules would allow these loans to be refinanced without setting off tax penalties for investors
- Anton Troianovski for The Wall Street Journal reports that the recovery environment could reflect the 1990s, when many real-estate developers went public to avoid bankruptcy and helped turn real-estate investment trusts into a major force in the property market
- The sector has a heavy debt load, but if REITs can roll it over, the shares may not suffer
- REITs already have rallied about 90% from the 18-year low they hit in March as the drop-off in home prices and economic conditions has slowed, reports Donna Kardos Yesalavich for The Wall Street Journal