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.
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.
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.