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
TheStreet Open House

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) International Real Estate 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.03 +90.89 0.53%
S&P 500 1,996.62 +12.49 0.63%
NASDAQ 4,536.6420 +17.74 0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs