International Real Estate

International (including U.S.) real estate mutual funds and ETFs are funds that... International (including U.S.) real estate mutual funds and ETFs are funds that cover a wide range of domestic and foreign real estate-related equities. This includes exposure to Real Estate Investment Trusts (REITs), property managers, land owners, brokers and other real estate servicers. Emerging markets may be included in the funds' holdings. Typically, they will hold both domestic and international stocks at the same time. Depending on their mandate, these funds can be actively or passively managed. International real estate mutual funds and ETFs offer the potential for both capital appreciation and ongoing income for investors. Capital appreciation may occur if the shares held by a fund increase due to rising property prices or rents. Income is generated via company dividends, which typically are the result of rents attributable to properties. These may be residential or commercial buildings. International real estate mutual funds and ETFs can be a good investment depending on where property prices are. It’s better to buy a fund when prices are depressed rather than frothy. These funds can also benefit when interest rates are low, as investors will place a higher value on their income streams. However, these funds are not without risks. Key risks include property prices falling, interest rates rising, and liquidity risk—there can be restrictions on how often an investor may cash out, at least for funds that don’t trade as stocks on the market. Last Updated: 11/04/2024 View more View less

International (including U.S.) real estate mutual funds and ETFs are funds that cover a wide range of domestic and foreign real estate-related equities. This includes exposure to Real Estate Investment Trusts (REITs), property... International (including U.S.) real estate mutual funds and ETFs are funds that cover a wide range of domestic and foreign real estate-related equities. This includes exposure to Real Estate Investment Trusts (REITs), property managers, land owners, brokers and other real estate servicers. Emerging markets may be included in the funds' holdings. Typically, they will hold both domestic and international stocks at the same time. Depending on their mandate, these funds can be actively or passively managed. International real estate mutual funds and ETFs offer the potential for both capital appreciation and ongoing income for investors. Capital appreciation may occur if the shares held by a fund increase due to rising property prices or rents. Income is generated via company dividends, which typically are the result of rents attributable to properties. These may be residential or commercial buildings. International real estate mutual funds and ETFs can be a good investment depending on where property prices are. It’s better to buy a fund when prices are depressed rather than frothy. These funds can also benefit when interest rates are low, as investors will place a higher value on their income streams. However, these funds are not without risks. Key risks include property prices falling, interest rates rising, and liquidity risk—there can be restrictions on how often an investor may cash out, at least for funds that don’t trade as stocks on the market. Last Updated: 11/04/2024 View more View less