This exchange-traded fund concentrates its holdings in U.S. real estate companies and REITs (Real Estate Investment Trusts). It provides investors with exposure to a broad range of properties across various sectors, from residential and commercial to industrial and specialized real estate. The fund is designed to track the investment results of an index composed of U.S. equities in the real estate sector.
Investing in this type of fund can offer diversification within a portfolio, allowing participation in the real estate market without directly owning physical properties. The fund’s performance is influenced by factors such as interest rates, economic growth, and occupancy rates within the real estate sector. It provides a liquid and relatively low-cost method of accessing the performance of the broader U.S. real estate market, compared to direct property ownership.
