A strong management team and sound investment process underpin iShares Global REIT ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy's effective investment approach earns an Above Average Process Pillar rating.  High yield exposure is attributed to holding more stocks with high dividend or buyback yields. And a high liquidity exposure is rooted in stocks with higher trading volumes, lending managers more flexibility. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Prologis

Equinix

Welltower

Simon Property Group

Realty Income Corp

Digital Realty Trust

Public Storage

Vici Properties

Extra Space Storage

AvalonBay Communities

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. iShares Global REIT ETF earns an Above Average Process Pillar rating. The most significant contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the investment results of the FTSE EPRA/NAREIT Global REITs Index.  The index is designed to track the performance of publicly-listed real estate investment trusts ("REITs") (or their local equivalents) in both developed and emerging markets. The fund generally will invest at least 80% of its assets in the component securities of the underlying index and in investments that have economic characteristics that are substantially identical to the component securities of the underlying index and may invest up to 20% of its assets in certain futures, options and swap contracts, and cash and cash equivalents. 

 The portfolio has allocations in its top two sectors, real estate and communication services, that are similar to the category. The sectors with low exposure compared to category peers are basic materials and energy; however, the allocations are similar to the category. The portfolio is positioned across 369 holdings and is diversified among those holdings. In its most recent portfolio, 36.6% of the portfolio's assets were concentrated in the top 10 fund holdings, compared to the category’s 39.2% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 7% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

iShares Global REIT ETF benefits considerably from its team, earning it an Above Average People Pillar rating. There are three managers listed on the fund: Greg Savage, Jennifer Hsui, Paul Whitehead. The team is well equipped, with an average of 18 years of portfolio management experience. Together, they manage a total of 258 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares Global REIT ETF

REET tracks a global, market-cap-weighted index of firms involved in the ownership and operation of real estate.

Real Estate Investment Trusts (REITs) have underperformed in recent years due to rising interest rates. The iShares Global REIT ETF is a diversified fund that tracks the largest REITs worldwide. The fund's top holdings include Prologis, Equinix, Welltower, Simon Property Group, and Public Storage.

REET: Global With A Big U.S. Tilt

Alpine Global Premier Properties Fund

JPMorgan BetaBuilders MSCI US REIT ETF

Cambria Global Real Estate ETF

Direxion Daily Real Estate Bull 3x Shares

Direxion Daily Real Estate Bear 3x Shares

First Trust Alerian Disruptive

Fidelity MSCI Real Estate ETF

First Trust S&P REIT Index Fund

Xtrackers International Real Estate ETF

iShares Cohen & Steers REIT ETF

iShares International Developed Real Estate ETF

CBRE Global Real Estate Income Fund

iShares U.S. Real Estate ETF

Nuveen Real Asset Income & Growth Fund

Nuveen Real Estate Income Fund

Invesco KBW Premium Yield Equity REIT ETF

Neuberger Berman Real Estate Securities Income Fund Inc

US Diversified Real Estate ETF

Invesco Active US Real Estate

ALPS Active REIT ETF

ProShares Short Real Estate

Cohen And Steers Total Return Realty Fund

Cohen & Steers Reit And Preferred Income Fund Inc

Cohen & Steers Quality Income Realty Fund

REIT index performance can be a leading indicator for the asset class as a whole. Our latest Asset Allocation recorded a strong quarter for listed real estate, showing signs of long-awaited resurgence. REITs send encouraging signals. A deeper analysis of sectoral returns since the Great Financial Crisis reveals no clear pattern, vindicating broad sectoral exposure.

Listed Real Estate: Searching For Positive Signals While Reviewing The Case For REITs

REET offers exposure to both market-leading U.S. and international REITs. An expectation of declining interest rates and a weaker U.S. Dollar should be positive for the market segment. REET is well-positioned to rally going forward.

REET: Bullish Tailwinds For Global REITs Into 2024

Hoya Capital Housing ETF

Pacer Benchmark Industrial Real Estate SCTR ETF

iShares U.S. Home Construction ETF

Janus Henderson U.S. Real Estate ETF

VanEck Mortgage REIT Income ETF

Direxion Daily Homebuilders & Supplies Bull 3X Shares

Nuveen Short-Term REIT ETF

Invesco Dynamic Building & Construction ETF

iShares Mortgage Real Estate ETF

iShares Residential Real Estate ETF

IQ US Real Estate Small Cap ETF

Invesco S&P 500 Equal Weight Real Estate ETF

SPDR Dow Jones REIT ETF

Schwab U.S. REIT ETF

Global X SuperDividend REIT ETF

Pacer Funds Trust-Pacer Benchmark Data & Infrastructure Real Estate Sector ETF

iShares Core U.S. REIT ETF

Vanguard Real Estate ETF

SPDR S&P Homebuilders ETF

Real Estate Select Sector SPDR Fund

DoubleLine Commercial Real Estate ETF

Invesco Real Assets ESG ETF

NETLease Corporate Real Estate ETF

SPDR Dow Jones Global Real Estate ETF

SPDR Dow Jones International Real Estate ETF

Vanguard Global ex-U.S. Real Estate ETF

iShares International Developed Property ETF

The history of construction spending since 1993 reveals that this data tends to weaken prior to recessions. For a recent dip in Residential Construction attributed to the rise in mortgage rates, this indicator is charging higher.

Construction Spending Rises

NAREIT has developed a financial metric called Funds From Operations, or FFO, that investors in REITs can use to better evaluate their financial performance. Dividend income plays a big role in why investors would seek to own stocks in REITs. What makes the FFO information valuable to investors is its correlation with the dividends paid out by REITs.

Connecting FFO To DPS For REITs

SP Funds S&P Global REIT Sharia ETF

This article compares the SP Funds S&P Global REIT Sharia ETF and the iShares Global REIT ETF, both of which focus on real estate investments. The SP Funds S&P Global REIT Sharia ETF tracks the performance of Shariah-compliant global real estate investment trusts included in the S&P Global BMI.

SPRE Vs. REET: Sharia Law Screen With REIT Focus

Interest rates have risen across the globe. As rates rise, demand for real estate decreases, due to higher mortgage rates, and as other investments start to offer competitive yields and returns. REET is a global REIT ETF, and has been negatively impacted by these trends.

REET And Higher Global Interest Rates: What Investors Need To Know

REET is not going to be able to escape the higher cost of capital, and the Fed seems determined to keep going with hikes. While REET has a lot of exposure to resilient categories that should be able to withstand higher rates, as a global value-weighted REIT, it has a lot of offices. We continue to worry about office exposures, especially as investment banks are expecting real estate to be one of the main loci of restructuring activity.

REET: Issues As Hawks Circle Above

Ashford Hospitality Trust

Alexandria Real Estate Equities

Avantis Real Estate ETF

Boston Properties

Cousins Properties

Diversified Healthcare Trust

Franklin Street Properties Corp.

Goldman Sachs Future Real Estate And Infrastructure Equity ETF

Home Appreciation US REIT ETF

Hudson Pacific Properties

Life Storage

ETRACS Monthly Pay 1.5X Leveraged Mortgage REIT ETN

InfraCap REIT Preferred ETF

Paramount Group

ETFB Green SRI REITs ETF

The REIT sector gave up most of January's big gains in February with a -6.18% total return. Small cap (-7.42%) and mid cap (-6.05%) REITs fell the furthest in February, with micro caps (-5.15%) and large caps (-4.74%) seeing smaller declines.

The State Of REITs: March 2023 Edition

REET, like all of the real estate asset class, is going to be struggling with rates. Any upside surprise to rates is a downside effect on the price, and the issue is there is every reason to expect upside surprises in rates given the current environment.

REET: Structurally Endangered By The Fed's Rate Mandate

Acadia Realty Trust

Bed Bath & Beyond

InnSuites Hospitality Trust

New York City REIT Inc

Sotherly Hotels

Global X Data Center REITs & Digital Infrastructure ETF

The REIT sector sharply rebounded from a tough 2022 with an +11.77% total return in January 2023. Micro cap REITs (+16.16%) saw disproportionately strong gains in January, followed by double-digit returns for small caps (+11.79%), mid caps (+11.50%) and large caps (+10.07%).

The State Of REITs: February 2023 Edition

REET has reasonably high assets under management and generates a decent level of yield. This enabled the ETF to generate an average return of 9 percent during 2016 and 2021. REET invests a significant proportion of its assets in Industrial, Specialized and Residential REITs - which performed better than other types of REITs.

REET: Diversified REIT Fund Investing In Growing Real Estate Segments

Janus Henderson Mortgage-Backed Securities ETF

First Trust Low Duration Opportunities ETF

iShares MBS ETF

SPDR Portfolio Mortgage Backed Bond ETF

Vanguard Mortgage-Backed Securities ETF

Mortgage rates have not been this high since before the housing crisis. And while the housing market is slowing, prices are still high.

High Mortgage Rates And High Inflation

Bluerock Homes Trust Inc

Braemar Hotels & Resorts Inc

Bluerock Residential Growth REIT

NETSTREIT Corp

Pennsylvania Real Estate Investment Trust

Power REIT

Sunstone Hotel Investors

Service Properties Trust

The REIT sector achieved only its 3rd month in the black out of the first 10 months of 2022 with a +8.69% total return in October. Large cap REITs (+2.92%) averaged small gains, micro caps (+7.36%) and mid caps (+8.11%) had moderate gains and small caps (+12.85%) surged.

The State Of REITs: November 2022 Edition

The ETFB Green SRI REITs ETF (RITA) invests in stocks of companies that follow the values and teachings of Shariah law. While new, the index provides longer history. I will compare RITA to the unrestricted iShares Global REIT ETF (REET) to see how RITA's screening affected return and risk for investors.

RITA ETF: A Shariah Screened REIT For Investors

REET has a lot of specialised REIT exposures which are in theory very resilient in concept and practice. They also have a lot of retail REITs which are traditionally less attractive but work through retail oversupply has gone on a while now, and these aren't toxic assets.

REET Can Offer Investors REITs' Recession Resilience, But Seems Redundant

REET is a global REIT index ETF. The fund provides investors with broad exposure to a cheap, strong-performing asset class.

REET: Global REIT Index ETF, Diversified Holdings, Strong Performance

VNQ and REET are two low-cost REIT ETFs that offer broadly diversified exposure to the sector. We compare them side-by-side to see which one appears to be a better buy today.

Better Low-Cost REIT ETF Buy: REET Or VNQ

CBL & Associates Properties

CyrusOne

CorePoint Lodging Inc

First Trust FTSE EPRA/NAREIT Developed Markets Real Estate

Farmland Partners

Gladstone Land

Strategic Residential & Apartment Real Estate ETF

iStar Inc

Seritage Growth Properties

After back-to-back negative return months at the start of the year, REITs began the recovery process in March with a +4.93% total return.

The State Of REITs: April 2022 Edition

As rising rates cool off the hot housing market, REITs could benefit from rising inflation.

Real Estate ETFs: Homebuilders Vs REITs

Ashford

American Tower

Blackstone Group

Condor Hospitality Trust

Gladstone Commercial

Industrial Logistics Properties

Office Properties Income Trust

RMR Group

2021 was a very strong year for REITs, which had positive total returns in 10 out of the 12 months, including December's +8.73% average return. Large cap (+49.35%) and small cap REITs (+47.34%) surged in 2021, while micro caps (+22.36%) significantly underperformed.

The State Of REITs: January 2022 Edition

BlackRock

One of the most substantive innovations of the 2017 Tax Cuts and Jobs Act was the creation of "qualified opportunity zones," or QOZs, which have the aim of stimulating long-term investment in economically distressed communities. In order to increase capital flows into dedicated QOZ funds, the legislation provided a number of major incentives for investors.

The Clock Is Ticking to Benefit From CrowdStreet's QOZs

Janus Detr Strt Shs Long-Term Care

Total housing starts rose to a 1.679 million annual rate in November from a 1.502 million pace in October, an 11.8 percent increase. Starts of multifamily structures with five or more units increased 12.1 percent to 491,000 and are up a robust 39.1 percent over the past year while starts for the two- to four-family-unit segment were up 50.0 percent at a 15,000-unit pace versus 10,000 in October.

Housing Construction Performed Well In November

CatchMark Timber Trust

EastGroup Properties

Kite Realty Group

Rexford Industrial Realty

REITs have achieved positive returns in 9 of the first 10 months of 2021, including a +4.25% average return in October. Large cap (+7.60%) and Mid cap REITs (+4.88%) surged in October while micro caps (-1.35%) badly underperformed.

The State Of REITs: November 2021 Edition

I am assigning a neutral rating to the iShares Global REIT ETF because data suggest that its price moves at a sluggish pace even over the long term. The ETF's low price gains and its low TTM dividend yield of 2.15% impact its current investable quotient.

REET: A Neutral View

News for iShares Global REIT ETF ETF (REET)