ETFs linked to FTSE EPRA/NAREIT real estate indices surpass $10bn in assets

May 21st, 2013 | By | Category: Alternatives / Multi-Asset

FTSE Group, a London-based global index provider, has revealed that assets under management in exchange-traded funds (ETFs) linked to the FTSE EPRA/NAREIT Global Real Estate Index Series have surpassed $10 billion.

ETFs linked to FTSE EPRA/NAREIT real estate indices surpass $10bn in assets

More than $10 billion of assets now reside in ETFs linked to the FTSE EPRA/NAREIT Global Real Estate Index Series.

The index series is one of the most widely followed gauges of property and real estate investment trust (REIT) performance and has been adopted by numerous ETF sponsors, including iShares, Lyxor, Deutsche Bank and First Trust.

ETFs linked to the series are available on seven exchanges across Europe and North America, including the Nasdaq Stock Market, the London Stock Exchange and the Deutsche Börse.

Among the largest ETFs, in terms of assets under management, is the Nasdaq-listed iShares International Developed REIT ETF (IFGL), which is tied to the FTSE EPRA/NAREIT Developed Real Estate ex-US Index.

Launched in 2005, in collaboration with EPRA and NAREIT, leading REIT trade associations in Europe and North America, the series has expanded from the original FTSE EPRA/NAREIT Developed Index to include a wide range of indices covering developed and emerging markets, high-dividend stocks and specific property sectors.

The series has recently been further enhanced with the launch of the highly investable FTSE EPRA/NAREIT Developed Super Liquid Index. Constituents are chosen from the most highly liquid constituents of the FTSE EPRA/NAREIT Developed index, while retaining the characteristics of the underlying index.  FTSE’s Super Liquid indices are designed to be easier to replicate than their original underlying indices.

Jonathan Horton, President of FTSE Americas and Head of FTSE’s ETP Service Unit, said: “This is an important milestone which underlines both FTSE’s position as the pre-eminent provider of global real estate benchmarks and as the preferred index provider for ETF issuers seeking to create new opportunities in real estate investment. We look forward to building on this success with our partners at EPRA and NAREIT to create innovative new tradable real estate indices which expand investor choice.”

Steven Wechsler, NAREIT President and CEO, added: “This significant development underscores the fact that liquid and diversified real estate investment is now available to investors worldwide through a growing number of financial products, due in part to the successful partnership undertaken by NAREIT and EPRA with FTSE.”

Meanwhile, Fraser Hughes, Director of Research, Indices & Investor Outreach at EPRA, said: “The interest in accessing real estate does not surprise us. Investors’ thirst for yield, coupled with longer-term performance make EPRA/NAREIT ETFs a proxy for direct real estate investment.  The EPRA/NAREIT selection process ensures only quality buildings managed by top quality executive teams are included.”

In total, more than $176 billion of ETF assets are currently benchmarked to FTSE indices worldwide.

Tags: , , , , , , , , ,

Leave a Comment



More in Alternatives / Multi-Asset
Short and leveraged ETP assets up 10% to $48.5 billion
Short and leveraged ETP assets up 10% to $48.5bn

Global short and leveraged exchange-traded product (ETP) assets rose by $4.4bn in the first four months of 2013, to $48.5bn, according to data...

Hedge fund ETF provider IndexIQ surpasses $1 billion in assets
Hedge fund ETF provider IndexIQ surpasses $1 billion in assets

IndexIQ, a US-based specialist provider of exchange-traded funds (ETFs), best known for its hedge fund-style products, has surpassed $1 billion in assets under...

Close