MutualFunds.com analyzes the search patterns of our visitors every two weeks to find the top trending funds. By sharing these trends with our readers, we hope to provide insights into what the financial world is concerned about and how to position your portfolio.

 
First, we select the top trending category from more than 200 categories listed on MutualFunds.com based on the percentage increase in monthly viewership. Then, we choose the top three funds with the highest one-year trailing total returns from the top trending category. To ensure the quality and staying power of funds, we only look at those mutual funds with a minimum of $150 million in assets and a track record of at least three years. We also remove those mutual funds that are closed to new investors and are not available for investment outside registered accounts such as retirement or 529 accounts.

In this edition, we take a closer look at trending international real estate funds for investors.

There are many reasons to invest in real estate in today’s environment, including the residential housing shortage and low mortgage interest rates. In addition to these trends, several industrial catalysts are driving niche real estate growth, such as the growing demand for data storage and issues impacting the global supply chain. Many of these trends are also impacting international real estate markets.

Our breakdown of each fund includes vital aspects such as one-year performance, performance from inception, fund expenses, investment strategy, and management team to give you an overview of how these funds hold up against their peers.

Be sure to check out the International Real Estate Funds page to find out more about the other funds in this category as well.

1. Baron Real Estate Fund (BREFX)

The number one mutual fund on this week’s list is the Baron Real Estate Fund (BREFX). It provided an exceptional trailing one-year total return of 66.03% with a 1.34% expense ratio, making it the top-performing and lowest cost fund on the list.

The fund’s strategy is to invest in real estate businesses with significant growth potential. With exposure across many different industries and capitalization ranges, it provides investors with ample diversification.

Jeffrey Kolitch manages the fund with 29 years of experience, including 16 years with Baron Funds. Since joining the firm in 2005, Mr. Kolitch has specialized in real estate. Before joining Baron Funds, he was managing director of Goldman Sachs’ Equity Capital Markets Group.

The fund’s portfolio consists of 86% U.S. equities and 8% non-U.S. equities, with a concentration in Consumer Cyclical (41.5%) and Real Estate (36.9%) equities. The portfolio’s most significant positions include Las Vegas Sands Corp. (4.8%), GDS Holdings Ltd. (4.2%), Wynn Resorts Ltd. (3.9%), and Penn National Gaming Inc. (3.4%).

Want to know more about portfolio rebalancing? Click here.

 

2. James Alpha Global Real Estate Investments Fund (JAREX)

The James Alpha Global Real Estate Investments Fund (JAREX) comes in second place. It generated a one-year trailing return of 43.33% with a 1.44% expense ratio and 1.4% yield, making it the highest yielding and the most expensive fund on the list.

The fund aims to provide a high level of diversification by both property type and geography. In particular, the portfolio is more concentrated in higher-growth specialty property types while offering investors exposure to over 10,000 properties in the U.S., Asia-Pacific, and Europe.

The fund is co-managed by Andrew J. Duffy, CFA, Jordan M. Sherman, and Todd A. Voigt, CFA. Mr. Duffy has more than 20 years of dedicated REIT experience and helped launch the public real estate securities platform for TIAA-CREF, managing over $3 billion in assets.

The fund’s portfolio includes exposure to the U.S. (47.6%), Hong Kong (19.3%), Japan (10.6%), France (3.2%), and the UK (3.2%), among other countries. Unlike conventional REITs focused on office or industrial properties, the company’s portfolio consists of Data Centers (11.4%), Life Sciences (5.2%), Towers (4.5%), and other unique areas.

Find funds suitable for your portfolio using our free Screener.

 

3. Third Avenue Real Estate Value Fund (TVRVX)

The Third Avenue Real Estate Value Fund (TVRVX) comes in third place. It has a one-year trailing return of 39.62% with a 1.4% expense ratio and 0.57% yield, putting it in the middle of the road in terms of expenses and yield.

The fund’s strategy is to maximize total return, emphasizing long-term capital appreciation and low levels of portfolio turnover. In addition, the fund invests in an expensive universe of real estate securities and real estate-related enterprises around the world.

The fund is co-managed by Jason Wolf and Ryan Dobratz, who have decades of experience in real estate securities and direct real estate ownership globally. In addition, the managers are principals in the firm and have significant personal capital invested in the strategy.

The fund’s portfolio consists of 58% U.S. equities and 39% non-U.S. equities. In addition to Real Estate (69%), the fund has exposure to Consumer Cyclical (17%) and Financial Services (10%). The most significant holdings include Five Point Holdings LLC (7.1%), Brookfield Asset Management Inc. (6.3%), and Lennar Corp. (6.1%).

Learn more about different Portfolio Management concepts here.

Real estate companies have been thriving since the beginning of 2021. With low mortgage interest rates, insatiable housing demand, and numerous industrial catalysts, investors seeking income and diversification from equities may want to consider real estate funds. The funds on our list provide unique and diversified exposure to the market.

And don’t forget to visit our News section to catch up with the latest news about mutual fund performance.

Note: Data as of June 28, 2021.