iShares International Dev Prpty ETF earns a Morningstar Medalist Rating of Neutral with strength in areas such as People offset by weaker spots such as Process. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy gets a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in yield exposure and an underweight in momentum exposure compared with category peers. High yield exposure is attributed to holding more stocks with high dividend or buyback yields. And low momentum exposure is rooted in holding stocks that are not currently on a winning streak and instead holding those that managers believe are undervalued. The strategy’s management team earns an Above Average People Pillar rating. 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

SCANA

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Leggett & Platt

Affiliated Mgr Grp 6.375 % Notes 2012-15.8.42 Sr

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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 International Dev Prpty ETF earns a Below Average Process Pillar rating. The process is bolstered by the firm's five-year retention rate of 92% over the period. However, the rating is weakened by the fund's mediocre 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 S&P Developed ex-U.S. Property IndexTM composed of real estate equities in developed non-U.S. markets.  The fund generally invests at least 80% of its assets in the component securities of the index and in investments that have economic characteristics that are substantially identical to the component securities of and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the index, and but which BFA believes will help the fund track the index. 

 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 strategy owns 386 securities and is diversified among those holdings. In its most recent portfolio, 27.3% of the strategy's assets were concentrated in the top 10 fund holdings, as opposed to the category average's 36.5%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 6% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Below Average

Process

iShares’s equity team is strong compared with others in the industry, resulting in an 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 solid long-term prospects. The strategies average a Silver asset-weighted Morningstar Medalist Rating, indicating a position 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.

Above Average

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 International Developed Property ETF

WPS tracks a market-cap-weighted index of companies that own or develop real estate throughout the developed world, excluding the United States.

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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

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Pressured by the broader housing cooldown, Apartment REITs have been among the weaker-performing property sectors over the past quarter despite achieving record-setting rent growth throughout the summer. While the era of 20% rent increases on new leases is over, there remains significant “embedded” rent growth in below-market renewals that should power impressive FFO growth into 2023.

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The iShares International Developed Property ETF, WPS, invests based on the S&P Developed ex-U.S. Property Index, meaning no EM exposure like Chinese Real Estate. The Vanguard Global ex-U.S. Real Estate ETF, VNQI, invests based on the S&P Global ex-U.S. Property Index, thus only US assets are excluded.

WPS Vs. VNQI: Better Results And No Exposure To EM Real Estate

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News for iShares International Developed Property ETF ETF (WPS)