This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Real Estate Funds Break Out, Led by Direxion

Stocks in this article: KIM VNO TJX

NEW YORK ( TheStreet) -- U.S. real estate funds broke out this week, jumping 7.7% as housing starts, building permits and homebuilder confidence improved in the most recent reporting periods.

The average global or international real estate fund we track climbed 2.8% for the week ending Sept. 17. Put together, domestic and foreign funds grew 6% during the period.

Housing starts in August rose to an annual rate of 598,000 from 589,000 in July, building permits increased to 579,000 annually from July's 564,000 reading, and the National Association of Home Builders/Well Fargo index is showing homebuilder confidence for September, while still dour, rose to the highest level in 16 months.

The best-performing fund remains the Direxion Daily Real Estate Bull 3X Shares (DRN), up an Earth-shattering 25%. It's 300% leveraged to the daily performance of the MSCI US REIT Index.

Another real estate investment trust, or REIT, that focuses on retail hints at two reasons why this sector is on the mend.

First, Kimco Realty (KIM), up 17.7% for the five trading days under review, is selling $250 million in 10-year debt to buy locations from over-leveraged owners who are forced to sell. Second, a Kimco executive for the central U.S. region said Thursday that the ability to get tenants has "improved fairly dramatically since January" and that his company is "getting good-quality retailers" including Ross Stores (ROST) and TJX Cos. (TJX). Vornado Realty Trust (VNO), up 13%, is also maneuvering to secure distressed buying opportunities.

Best-Performing Real Estate Funds for the Week
Fund (Ticker) Rating
Fund Type
1 Week Total Return
Direxion Daily Real Estate Bull 3x Shares (DRN) U
ProShares Ultra Real Estate (URE) C
Cohen & Steers Advantage Income Realty Fund Inc (RLF) E
Cohen & Steers Premium Income Realty Fund Inc (RPF) E
ProFunds Real Estate UltraSector ProFund (REPSX) E-
Cohen & Steers Quality Income Realty Fund Inc (RQI) E
Cohen & Steers REIT and Preferred Income Fund Inc (RNP) E+
Cohen & Steers REIT and Utility Income Fund Inc (RTU) D-
DWS RREEF Real Estate Fund Inc (SRQ) E
ING Clarion Real Estate Income Fund (IIA) E+
Source: Bloomberg & Ratings

On the downside are the inverse funds shorting the sector with negative leverage up to 300%, resulting in declines of 7.6% in ProFunds Short Real Estate ProFund (SRPIX), 15% in ProShares UltraShort Real Estate (SRS) and 22% in Direxion Daily Real Estate Bear 3x Shares (DRV).

1 of 2

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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