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How to Invest in Equity Residential through ETFs

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ETFs are the best way to meet asset allocation

Asset allocation is the primary factor that’s responsible for investment returns. ETFs are a convenient way for investors to build a portfolio that meets specific asset allocation needs. In addition, ETFs are an easy way to obtain portfolio diversification across a number of asset classes. Most ETFs also track a market index. They mirror the performance of an entire market in a single trade. In this part, we’ll see how sector-specific and sector-agnostic ETFs invest in Equity Residential’s (EQR) stock.

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Sector-specific ETFs

Equity Residential is a major stock on the NYSE. It has a market capitalization of $25.5 billion. It’s part of the S&P 500 Index. As a result, Equity Residential sees allocation in almost all REIT-specific ETFs. For example, the Vanguard REIT ETF (VNQ) has 3.89% stake in the company. The other major REIT ETF is the iShares U.S. Real Estate ETF (IYR). It has 3.30% exposure in Equity Residential. Another top REIT is the iShares Cohen & Steers REIT ETF (ICF). It has 6.82% exposure in Equity Residential while the SPDR DJ Wilshire REIT ETF (RWR) has 4.76% exposure in the company.

REIT ETFs have exposure in other REIT stocks like AvalonBay Communities (AVB), Essex Property Trust (ESS), UDR (UDR), and Camden Property (CPT).

VNQ is the biggest ETF mentioned above. It has $25.2 billion in assets under management with an expense ratio of 0.12%. IYR has $4.4 billion in assets under management with an expense ratio of 0.43%. ICF has $3.18 billion in assets under management with an expense ratio of 0.35%.

Please visit Market Realist’s Real Estate Investment Trusts page to learn more about this industry.

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