Real Estate Funds Rally on Sales Data

The best performing fund, the Direxion Daily Real Estate Bull 3X Shares ETF(DRN), is 300% leveraged to the daily performance of the MSCI US REIT Index. The fund rose 15% in the five trading days under review. Gains of 44% in Gramercy Capital(GKK), 18% in Strategic Hotels & Resorts(BEE) and 17% in FelCor Lodging Trust(FCH) were among real estate investment trust movers.

Best Performing Real Estate Funds for the Week Ending Thursday Aug. 27 Fund (Ticker) Rating Fund Type 1 Wk Tot'l Return Direxion Daily Real Estate Bull 3x Shares (DRN) U ETF 14.84% Cohen & Steers Worldwide Realty Income Fund Inc (RWF) E Closed-End 9.93% ProShares Ultra Real Estate (URE) E- ETF 8.28% DWS RREEF Real Estate Fund Inc (SRQ) E Closed-End 7.46% iShares Dow Jones US Home Construction Index Fund (ITB) E+ ETF 7.18% iShares FTSE NAREIT Retail Capped Index Fund (RTL) E+ ETF 6.85% SPDR S&P Homebuilders ETF (XHB) D- ETF 6.77% DWS RREEF Real Estate Fund II Inc (SRO) E Closed-End 6.67% ProFunds Real Estate UltraSector ProFund (REPSX) E- Open-End 6.29% Cohen & Steers Quality Income Realty Fund Inc (RQI) E Closed-End 6.20% Source: Source: TheStreet.com Ratings & Bloomberg

Three inverse funds that short the sector with 100%, 200% and 300% negative leverage were among the losing funds. The ProFunds Short Real Estate ProFund(SRPIX) declined 4.2%, while the ProShares UltraShort Real Estate ETF(SRS) fell 7.8% and the Direxion Daily Real Estate Bear 3x Shares(DRV) slid 13%.

The Claymore/AlphaShares China Real Estate ETF(TAO) was the only other losing fund, off 1.5%. The fund is pulling back as investors sell holdings in the Hong Kong and mainland Chinese property markets, which have performed well this year.

For more information, check out an explanation of our ratings.

-- Reported by Kevin Baker in Jupiter, Fla..

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