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3 ETFs on the real estate market to monitor in 2024

According to Statista, the global real estate market is projected towards significant expansion in the coming years, with forecasts indicating a total value reaching 637.80 trillion.
This upward trend is particularly evident in the residential real estate sector, which is expected to dominate the market with an estimated volume of $518.90 trillion over the same period.
This forecast is fueled by a variety of factors, including growing housing demand and investment in the sector.
The rise of the real estate market does not appear to be stopping in the short term, with an expected annual growth (CAGR 2024-2028) of 3.41%.
This sustained growth rate promises to drive the overall market value to reach $729.40 trillion by 2028, underscoring the strategic importance and economic attractiveness of this sector.
As the real estate market extends on a global scale, it is interesting to note that a significant portion of this value will be generated in China, with forecasts estimating an impressive volume of $135.70 trillion in 2024.
This highlights the predominant role of China's economy in shaping the global real estate market landscape and suggests unique opportunities and challenges for investors and industry players.
In this perspective of growth and change, detailed analysis of real estate-related Exchange Traded Funds (ETFs) becomes crucial for investors seeking to navigate this dynamic environment.
read also +220% in 5 years for this equity ETF 1) iShares Asia Property Yield UCITS ETF The iShares Asia Property Yield UCITS ETF, the largest and most affordable of the three, offers exposure to Asian real estate investments through the replication of the FTSE EPRA/NAREIT Developed Asia Dividend+ index.
Its full physical replication strategy, based on purchasing all components of the underlying index, ensures close alignment with market performance.
With a TER of 0.59% per annum, the ETF seeks to provide an acceptable balance between costs and returns.
Over the past year, the ETF has come under significant pressure, declining 10.29%.
The annual volatility of 12.15% suggests relatively low stability in the short term.
The quarterly dividend distribution, with a current yield of 3.97%, could be an attractive factor for income-oriented investors.
Managing assets of approximately €290 million since launch in 2006 highlights the solidity of the ETF, which has tax domicile in Ireland.
The top 10 holdings show a high concentration in countries such as Japan (45.57%), Singapore (17.06%), Hong Kong (16.55%) and Australia (15.97%).
This geographic diversification could help mitigate specific risks related to a single market.
read also This equity ETF has gained over 65% in 1 year 2) iShares UK Property UCITS ETF EUR Hedged (Acc) The iShares UK Property UCITS ETF EUR Hedged (Acc) is characterized by currency hedging, offering protection against currency fluctuations.
However, with assets under management of just €12 million and a launch in May 2022, it is considered a small and relatively young ETF on the market.
The TER of 0.42% per year makes it quite competitive, but the ETF has posted a negative return of 6.97% over the past year, raising questions about its ability to generate positive returns in adverse market conditions.
Investors should pay attention to the dividend accumulation policy, which may not be suitable for those seeking regular returns.
The volatility of 24.48% suggests a higher level of uncertainty than the iShares Asia Property Yield ETF.
The geographic concentration of the portfolio shows significant affinity with the UK, which accounts for 94.04% of the top 10 holdings.
read also The Bitcoin ETF has these (serious) underlying problems 3) BNP Paribas Easy FTSE EPRA Nareit Developed Europe ex UK Green UCITS ETF The BNP Paribas Easy FTSE EPRA Nareit Developed Europe ex UK Green UCITS ETF focuses on European real estate companies sustainable, excluding the UK.
The weighting of companies is based on sustainability criteria, such as the certification of "green" construction and the use of renewable energy.
With a TER of 0.40% per annum, the ETF aims to offer a balance between sustainability and returns.
However, the negative performance of 7.34% over the past year may raise questions about its resilience in adverse market conditions.
The high volatility of 27.30% suggests greater riskiness.
Sustainability-minded investors might consider this option, but should be aware of the associated risks.
The management of assets of around 115 million Euros and the ETF structure offer a solid basis, but the monthly returns and the 1-year risk overview show a mixed performance.
In conclusion, each ETF has unique characteristics and specific risks.
Investors should carefully consider their needs and risk profile before committing to any of these financial instruments.
read also Why is Vanguard not interested in Bitcoin ETFs? Disclaimer The information and considerations contained in this article should not be used as the sole and principal basis on which to make investment decisions.
The reader maintains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.

Author: Hermes A.I.

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