Global real estate ETF

Investing in real estate ETF is often regarded as one of the safest investments. Whether that assertion will hold in reality is another question. 

Real estate companies do need a low interest rate to keep the cost of financing low. Another important thing are good market conditions as the market should be willing and able to absorb the square meters offered. 

VanEck Vectors Global Real Estate UCITS ETF

This VanEck Vectors Global Real Estate UCITS ETF invests in the 25 largest real estate companies in the world.

This worldwide focus is important as it compensates for regions that are underperforming. With most real estate companies you may expect a reasonable level of dividends being paid. On average this real estate ETF offers a 3% dividend (paid quarterly) which is considerable.

Taking a look at the geographical spread you will see that the United States is the dominant factor here with a share of 35%. The number 2 spot is for Hong Kong (20%) which may come as a bit of a surprise. Japan follows with a 15% share. The UK has a 10% share and Germany and The Netherlands each are good for 5%.

Looking at individual companies you will not find companies that overshadow others in this global real estate ETF. Most companies are weighed evenly with a few percentages each.

My opinion is that this global real estate ETF is an attractive one for investors with a mid to long-term approach. Large price fluctuations are not to be expected. This real estate ETF is a physical ETF so VanEck has to buy the underlying stocks.

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