A strong management team and sound investment process underpin iShares Residential & Multisector RE ETF's Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable 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. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a considerable overweight position in quality exposure and has an overweight in yield exposure compared with category peers. A high quality exposure means holding stocks that are consistently profitable, growing, and have solid balance sheets. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. 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

Welltower

Public Storage

Extra Space Storage

AvalonBay Communities

Equity Residential

Essex Property Trust

Ventas

Invitation Homes

Mid-America Apartment Communities

Sun Communities

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. iShares Residential & Multisector RE ETF earns an Above Average Process Pillar rating. The leading factor in the rating is the firm's five-year retention rate of 92% over the period. This fund tracks an index, which also increases its process rating. Historical data, like Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Lastly, the process is limited by the fund's unremarkable long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the investment results of the FTSE Nareit All Residential Capped Index composed of U.S. residential, healthcare and self-storage real estate equities.  The fund generally will invest at least 80% of its assets in the component securities of the underlying index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents. The underlying index measures the performance of the residential apartments, manufactured homes, and healthcare and self-storage real estate sectors of the U.S. equity market. The fund is non-diversified. 

 The portfolio is overweight in real estate by 2.6 percentage points in terms of assets compared with the category average, and its healthcare allocation is similar to the category. The sectors with low exposure compared to category peers are consumer cyclical and financial services; however, the allocations are similar to the category. The portfolio is composed of 42 holdings and is relatively concentrated. Specifically, 67.7% of the fund’s assets are housed within the top 10 holdings, compared with the category’s 59.9% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 18% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Above Average

Process

iShares Residential & Multisector RE ETF's strong equity team drives the strategy's Above Average People Pillar rating. There are three managers listed on the fund: Paul Whitehead, Jennifer Hsui, Greg Savage. The team is well equipped, with an average of 18 years of portfolio management experience. Together, they manage a total of 257 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 Residential Real Estate ETF

REZ tracks a market cap-weighted index of US residential, health care, and specialized REITs.

iShares U.S. Home Construction ETF

Invesco Dynamic Building & Construction ETF

SPDR S&P Homebuilders ETF

The March release for new home sales from the Census Bureau came in at a seasonally adjusted annual rate of 693,000 units, its fastest pace in six months and higher than the 668,000 forecast. New home sales were up 8.8% month-over-month from a revised rate of 637,000 in February and are up 8.

New Home Sales Jump 8.8% in March

The February release for new home sales from the Census Bureau came in at a seasonally adjusted annual rate of 662,000 units, falling short of the 675,000 forecast. New home sales were down 0.3% month-over-month from a revised rate of 664,000 in January and are up 5.9% from one year ago.

New Home Sales Fall 0.3% in February

Invesco S&P 500 Equal Weight ETF

SPDR S&P 500 ETF Trust

Consumer Discretionary Select Sector SPDR Fund

Economic indicators are released every week to provide insight into the overall health and performance of an economy. They serve as essential tools for policymakers, advisors, investors, and businesses because they allow them to make informed decisions regarding business strategies and financial markets.

Exploring Economic Indicators: The Housing Market

Amplify Online Retail ETF

Proshares Online Retail ETF

VanEck Vectors Retail ETF

SPDR S&P Retail ETF

Economic indicators provide insight into the overall health and performance of an economy. They are essential tools for policymakers, advisors, investors, and businesses.

Exploring Economic Indicators: Inflation, Retail Sales, Consumer Sentiment

The January release for new home sales from the Census Bureau came in at a seasonally adjusted annual rate of 661,000 units, falling short of the 680,000 forecast. New home sales were up 1.5% month-over-month from a revised rate of 651,000 in December and up 1.9% from one year ago.

New Home Sales Inch Up in January But Fall Short of Expectations

Economic indicators play a central role in understanding the health and performance of the U.S. economy. They are essential tools for policymakers, advisors, investors, and businesses because they allow them to make informed decisions regarding business strategies and financial markets.

Exploring Economic Indicators: Existing Home Sales & Leading Economic Index

The December release for new home sales from the Census Bureau came in at a seasonally adjusted annual rate of 664,000 units. New home sales were up 8.0% month-over-month from a revised rate of 615,000 in November and up 4.4% from one year ago.

New Home Sales Rebound in December

Economic indicators are released each week to provide insight into the overall health and performance of the U.S. economy. They play a crucial role in enabling policymakers, advisors, investors, and businesses to assess current economic conditions.

What's Happening in the Housing Market?

Economic indicators provide insight into the overall health and performance of an economy. They play a crucial role in enabling policymakers, advisors, investors, and businesses to assess current economic conditions.

Last Week's Inflation Numbers

Based on residential real estate analytics, investors may expect a rebound in house prices. REIT space appears to be trading at a meaningful historical discount. Seemingly, Camden Property and Mid-America Apartment offer the greatest value amongst the largest.

Residential Real Estate Cycle Analytics Suggests REIT Prices Likely Rebound Till 2024 Q3

The November release for new home sales from the Census Bureau came in at a seasonally adjusted annual rate of 590,000 units. New home sales were down 12.2% month-over-month from a revised rate of 672,000 in October and up 1.4% from one year ago.

New Home Sales Plummet in November 2023

The iShares Residential and Multisector Real Estate ETF offers investors exposure to the residential and multisector real estate markets. The REZ fund includes diverse investment holdings, with a focus on residential and storage REITs. REZ provides investors with broad market exposure and income potential, but comes with market risks and a higher expense ratio.

REZ: A Good REIT Play

Economic indicators provide insight into the overall health and performance of an economy. They are closely watched and serve as essential tools for policymakers, advisors, investors, and businesses.

Economic Indicators Point to Easing Inflation & Increased Spending

Fidelity MSCI Real Estate ETF

First Trust S&P REIT Index Fund

Hoya Capital Housing ETF

iShares Cohen & Steers REIT ETF

Pacer Benchmark Industrial Real Estate SCTR ETF

iShares U.S. Real Estate ETF

Janus Henderson U.S. Real Estate ETF

Invesco KBW Premium Yield Equity REIT ETF

VanEck Mortgage REIT Income ETF

Direxion Daily Homebuilders & Supplies Bull 3X Shares

Nuveen Short-Term REIT ETF

US Diversified Real Estate ETF

Invesco Active US Real Estate

iShares Global REIT ETF

iShares Mortgage 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

Real Estate Select Sector SPDR Fund

Alpine Global Premier Properties Fund

JPMorgan BetaBuilders MSCI US REIT ETF

DoubleLine Commercial Real Estate ETF

First Trust Alerian Disruptive

iShares International Developed Real Estate ETF

CBRE Global Real Estate Income Fund

Invesco Real Assets ESG ETF

NETLease Corporate Real Estate ETF

ALPS Active REIT 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

The September release for new home sales from the Census Bureau came in at a seasonally adjusted annual rate of 759,000 units, the fastest pace since February 2022. The latest reading came in higher than the forecasted 680,000 rate.

New Home Sales Jump to Fastest Pace Since February 2022

iShares Residential and Multisector Real Estate ETF is not recommended for most investors due to its shift in focus, sporadic distribution history, high expense rate, and easy replicability. The fund's top holdings are not primarily residential REITs, with Public Storage, Welltower, and Extra Space Storage being the largest holdings. Residential REITs can be a good hedge against inflation and have a history of dividend growth, but REZ's focus and performance are lacking.

REZ: A Fund That Lost Its Focus

Economic indicators are released regularly to measure, track, and analyze the health and performance of the U.S. economy. Policymakers, advisors, and analysts closely monitor these indicators to gauge recession risk and understand the direction of interest rates.

Rising Mortgage Rates and Their Ripple Through the Housing Market

Economic indicators are released every week to provide insight into the overall state of the U.S. economy. Policymakers and advisors closely monitor economic indicators to understand recession risk and the direction of interest rates because the data can ultimately impact business decisions and financial markets.

Inflation's Lingering Shadow: A Look at Recent Economic Indicators

Principal Real Estate Active Opportunities ETF

Dimensional US Real Estate ETF

Goldman Sachs Future Real Estate And Infrastructure Equity ETF

Home Appreciation US REIT ETF

InnSuites Hospitality Trust

JPMorgan Realty Income ETF

Medical Properties Trust

Strategic Residential & Apartment Real Estate ETF

Hoya Capital High Dividend Yield ETF

The REIT sector followed a strong June with further gains in July, averaging a solid +4.37% total return in July. Small-cap REITs (+5.23%) continued to outperform in July. Large caps (+2.46%) underperformed their smaller REIT peers for the 3rd straight month in July. 73.72% of REIT securities had a positive total return in July with 60.63% in the black year to date.

The State Of REITs: August 2023 Edition

Several key economic indicators are released every week offering valuable insights into the overall health of the U.S. economy. Policymakers and advisors closely monitor economic indicators to understand recession risk and the direction of interest rates because the data can ultimately impact business decisions and financial markets.

Assessing the Economy Through Consumer Sentiment and Housing

Economic indicators are released every week to help provide insight into the overall health of the U.S. economy. With the Fed's tightening on monetary policy and the constant threat of a recession looming, policymakers and advisors are closely monitoring economic indicators because the data can ultimately impact business decisions and financial markets.

Assessing the Recession Risk: Interpreting Key Economic Indicators

Several key economic indicators are released every week to help provide insight into the overall health of the U.S. economy. Last week was packed with housing-related data that could impact home builders and residential real-estate ETFs such as the Invesco Dynamic Building & Construction ETF (PKB), the iShares U.S.

It's the Economy That Matters: Insights From Key Housing Market Indicators

Economic indicators are released every week to help provide insight into the overall health of the U.S. economy. In this article, we examine indicators from the past week, such as inflation, that shed light on both inflationary trends and sentiment within the market.

A Promising Shift as Inflation Cools and Sentiment Soars

Several key economic indicators are released every week to help provide insight into the overall health of the U.S. economy. Last week had a heavy focus on housing-related data that could impact home builders and residential real estate ETFs such as the Invesco Dynamic Building & Construction ETF (PKB), the iShares U.S.

It's the Economy That Matters: The Housing Market

Economic indicators are released every week to help provide insight into the overall health of the U.S. economy. In this article, we examine three important indicators from the past week: consumer price index, producer price index, and retail sales.

News for iShares Residential Real Estate ETF ETF (REZ)