SPDR ETFs, the exchange-traded funds platform of State Street Global Advisors, has launched the SPDR Dow Jones Global Real Estate ETF on Xetra.
The launch marks the expansion of the European SPDR ETFs range into a new asset class.
The SPDR fund, which is physically backed, tracks the Dow Jones Global Select Real Estate Securities Index by owning a diversified portfolio of listed real estate investment trusts and operating companies to replicate the global real estate market.
The new ETF offers an easy, cost-efficient and liquid way to access property exposure in a Ucits-compliant form. Global real estate investment provides diversification due to its low correlation to equities and bonds. The inclusion of emerging markets (just under five per cent of the index) enables investors to access property companies in rapidly growing countries that are likely to evolve to take greater prominence in the global property market.
Scott Ebner, global head of product development at SPDR ETFs, says: “It can be challenging for clients to manage real estate allocations efficiently. The global and diversified nature of our new SPDR ETF could serve as a core real estate holding in a well-balanced portfolio.”