This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Play Foreign Real Estate With ETFs

Other Ways to Play

Another ETF in the mix is the SPDR Dow Jones Wilshire International Real Estate (RWX) ETF. Because this fund is weighted by market cap, it looks a little different. Australia still figures prominently, with 19.79% of the fund's weight (and again Westfield is the largest stock with 6.66%), but Japan is a touch larger at 20.11%, and the U.K. plays a bigger role in RWX at 16.35%.

The yield on RWX is likely to be 2.05% (the yield of the index less the 0.60% expense), which is obviously less than DRW, but the trade-off might be better country diversification.

Recently listed is the Alpine Global Premier Properties Fund (AWP), a closed-end fund. Because the fund is brand-new, there's no information on its holdings, but lead manager Sam Lieber was recently on CNBC and mentioned a couple of stocks he liked, including Norwegian Properties and Orient-Express Hotels (OEH), so it's possible that they are in the fund.

Alpine also has an open-end fund that could be a template for AWP -- the Alpine (EGLRX) fund (EGLRX).

AWP has set the dates and amounts for its first few monthly dividends, and the fund yields 7.60%. According to the prospectus, the fund can use leverage and options but does not plan to.

I have to wonder whether the first few payouts represent the returning of some capital. I was not able to get an answer from the fund -- they are not required to give these details until the end of the year.

Also contributing to the yield -- again, I think it will take a while before this kicks in -- is that one-third of the fund will use a dividend-capture strategy within the international real estate space. As a quick reminder, dividend capture means holding a stock just long enough to get the dividend at the qualified tax rate, and then rotating to a similar stock to capture that dividend, and then going back to the first stock, and so on.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
OEH $10.88 0.65%
AWP $6.51 0.00%
DRW $28.88 0.00%
RWX $41.91 0.00%
AAPL $126.44 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs