Boston-based State Street Global Advisors, the investment management arm of State Street Corporation, has announced that assets in the SPDR DJ Wilshire International Real Estate ETF, bille
Boston-based State Street Global Advisors, the investment management arm of State Street Corporation, has announced that assets in the SPDR DJ Wilshire International Real Estate ETF, billed as the first exchange-traded fund to offer US investors access to global real estate securities publicly traded outside the US, have reached USD500m in less than three months.
‘A number of catalysts appear to be driving investor demand for international real estate exposure, including a very low correlation to the broader US and international equity markets,’ says SSgA senior managing director James Ross.
‘The significant inflows into the SPDR DJ Wilshire International Real Estate RWX ETF indicate that investors have quickly embraced this offering as a vehicle to gain more precise exposure to the global markets.’
Launched on December 19 last year, the SPDR DJ Wilshire International Real Estate ETF has become the fastest-growing ETF listed in the US during the past six months, with assets under management in the fund totalling around USD500m by March 7.
‘As investors increasingly look toward real estate securities globally to diversify their equity portfolios, they require more sophisticated risk measurement tools to benchmark their returns,’ says Michael A. Petronella, president of Dow Jones Indexes/Ventures.
‘The Dow Jones Wilshire Global Real Estate Indexes were launched in 2006 to meet this demand, particularly as more institutional and individual investors seek exposure to Reits and real estate operating companies outside the US.’
With USD1.7trn in assets under management at the end of last year, State Street Global Advisors has investment centres in Boston, Hong Kong, London, Milan, Montreal, Munich, Paris, Singapore, Sydney, Tokyo and Zurich, and offices in 25 cities worldwide.