February 4, 2012

FTSE NAREIT Residential Index Fund for Your Next Real Estate ETF Investment

Looking for a great real estate ETF investment? Do some research on the iShares FTSE NAREIT Residential Index Fund (NYSE:REZ). While some funds have outperformed others, none have done better that the FTSE NAREIT Residential Index Fund

While overall the sector may still be facing some headwinds, most funds in the Real Estate ETFdb Category have performed rather well so far in 2011 thanks to these outperforming sectors. In fact, over the 18 ETFs in the space, 13 have outperformed the S&P 500 in a year-to-date comparison, suggesting that the vast majority of products are giving investors a better performance from a capital gain perspective– not to mention yield– than a simple investment in the S&P 500.

REZ has managed to produce a 9.8% gain for investors so far in 2011, thoroughly trouncing the market and beating out far more popular funds as well. For example, the two most popular products in the space, (NYSE:VNQ) and (NYSE:IYR), are producing returns of 0.65% and -1.4%, respectively, on a year-to-date basis for their investors.

While both of these products do provide investors with slightly better yields than REZ, they obviously do not come close from a performance standpoint, either this year or from longer term periods as well. In fact, when looking at the previous three years, REZ is the top performer in the category, gaining 16.5% while VNQ gained slightly (up 1.6%), and IYR lost a bit (down 3.7%) in comparison.

Real estate ETFs are a fantastic way to invest your money. Even in the struggling housing market, if you know which ones to invest in, then you are definitely going to make some money. Here are 10 more real estate ETFs to keep an eye on.

ETFs for Gold and Silver Are Continuing to Trade Strong

ETFs for both gold and silver continue to trade strong, as they are a great investment for those looking for a new ETF to get involved with.

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust , said its holdings dropped 1 percent to 1260.2 tonnes Friday from 1272.90 tonnes on Thursday.

Yet today SPDR Gold Trust registered its biggest one-day gain in more than a year, rising 1.8 percent, as investors flocked to seek refuge in bullion of gold and silver because of the continuing economic concerns that are being triggered by a debt downgrade of the United States from a AAA to a AA+credit rating.

Holdings of the world’s largest silver-backed exchange-traded fund, iShares Silver Trust dropped 0.7 percent to 9705.90 tonnes by Friday, from 9772.56 tonnes on Thursday. Again, numbers were up today, as silver is volatile anyway so you can expect to see these price spikes often and not be alarmed.

iShares, Tons of ETFs in One Spot

If you’re looking for a one stop shop of exchange-traded funds, then you don’t have to look much further than one company. That company is iShares. This company is one of leading ETF providers out there and has funds in all types of funds in all types of sectors.

iShares has silver ETFs and gold ETFs which have been helping push the precious metals to all time highs. That and all the turmoil in the stock market and us economy.

They also have leading market and sector exchange traded funds that will allow you to choose a whole sector at once without the need to buy many many equities. This can be great and enable you to diversify easily without having to sink a lot of money in things like mutual funds. The biggest challenge you’ll have is choosing which sector is hot right now and which isn’t.

A quick note on choosing a sector. A lot of times, by the time you here of a hot sector. It’s too late, and you miss out on the run up. Getting into an ETF allows you have less exposure to that one company you would normally have to choose in that sector. This can make any losses after a sell off have less of an impact on your bottom line.

More on this later…