ETFs A great way to meet asset allocation
Asset allocation is a primary factor responsible for investment returns, and ETFs are a convenient way for investors to build a portfolio that meets specific asset allocation needs. In addition, ETFs are a convenient and easy way of portfolio diversification across a number of asset classes. Most ETFs also track a market index, mirroring the performance of an entire market in a single trade. In this article, we’ll see how sector-specific and sector-agnostic ETFs invest in Essex Property Trust’s (ESS) stock.
Essex Property Trust is a major stock on NYSE with a market capitalization of $14.4 billion. It’s also part of the S&P 500 index. Consequently, Essex Property Trust sees allocation in almost all REIT specific ETFs. For example, the iShares Cohen & Steers REIT ETF (ICF) has a 3.7% stake in the company. The other major REIT ETF iShares U.S. Real Estate (IYR) has a 1.9% exposure in Essex Property Trust. Meanwhile, the SPDR Dow Jones Wilshire REIT ETF (RWR) has a 2.5% exposure in Essex Property Trust. REIT ETFs have an exposure in other REIT stocks such as AvalonBay Communities (AVB), Essex Prop Trust (ESS), UDR (UDR), and Camden Property (CPT).
The iShares U.S. Real Estate ETF (IYR) is the biggest of the lot at $4 billion in assets under management with an expense ratio of 0.4%. Then we have the iShares Cohen & Steers REIT ETF (ICF) at $3.18 billion in assets under management with an expense ratio of 0.4%. It’s followed by the SPDR Dow Jones Wilshire REIT ETF (RWR) with $2.87 billion in assets under management with an expense ratio of 0.25%.
Please visit Market Realist’s REIT page to learn more about this industry.