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Retail REITs Lead the Way with Top Performance in IYR

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Retail, healthcare, and industrials are top-performing REITs

On January 5, 2016, the iShares US Real Estate ETF (IYR) rose 1.6%, outperforming the broad-based SPDR S&P 500 ETF (SPY) at 0.2%. The top performing subgroups were retail REITs, healthcare REITs, and industrial REITs, which rose 2.5%, 2.4%, and 2.7%, respectively. Office REITs ended the day at the bottom with a 1.2% return.

The above graph shows the yearly performance of the top performers from each subgroup in the broad-based SPDR S&P 500 ETF (SPY).

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Performance of the IYR subgroups

  • Retail REITs were the top performers of the iShares US Real Estate ETF (IYR) on January 5, 2016, with a return of 2.5%. There were 17 REITs in the subgroup. The ones that outshined the rest and added to the fund’s performance were Kite Realty Group Trust (KRG) and Macerich (MAC), with positive returns of 4.1% and 3.9%, respectively.
  • The healthcare REIT subgroup was another feather in the IYR cap. The subgroup ended January 5 with a positive return of 2.4%. The top-performing REITs in the subgroup were Medical Properties Trust (MPW) and Healthcare Trust of America (HTA), with returns of 3% and 2.9%, respectively.
  • The industrial REIT subgroup ended January 5 with a positive return of 2.7%. The subgroup constitutes a small part of IYR with a total weight of 3.2%. Securities such as DCT Industrial Trust (DCT) and EastGroup Properties (EGP) contributed the most with returns of 3.4% and 2.7%, respectively.

The positive performance of IYR was a joint effort of all the subgroups in the ETF. Investors should keep an eye on IYR to see if it continues to beat SPY on a daily basis.

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