Bringing you live news and features since 2006 

ETF assets linked to FTSE EPRA/NAREIT indices hit USD7.1bn in a year


The global assets in exchange-traded funds linked to benchmark FTSE EPRA/NAREIT real estate stock indices have jumped by over 90 per cent in the past year to USD7.1bn.

Investors have been attracted into these tracker funds by high yields, quality diversified real estate exposure in a tradable form and the outperformance of listed real estate relative to general equities indices.

Fraser Hughes (pictured), research director at the European Public Real Estate Association (EPRA), says: “Investment flows into ETFs reflect general institutional and retail investor sentiment towards an asset class. The combination of real estate stocks’ attractive high yields in a low-yielding world and the chance to gain exposure to some of the best located and managed buildings in major world cities, seems to have driven the long-term outperformance of real estate relative to global equity and bond markets. On top of these factors, we’re also seeing a shift in ETF provider assets linked to FTSE EPRA/NAREIT indices, as seen by the recent switch by Lyxor, which reflects the high standards of management and transparency of our benchmarks. In addition, the vast majority of dedicated global investment managers who offer a tailored or active approach to listed real estate investment use the FTSE EPRA/NAREIT indices.”

ETFs tracing the index series are currently available via HSBC, Blackrock iShares, Deutsche Bank, Lyxor, First Trust and EasyETF.

Earlier this month Lyxor, the third largest ETF provider in Europe by assets under management, announced that it had chosen to replace the indices it uses as the basis for its Global Real Estate ETFs with the FTSE EPRA/NAREIT Developed Global Real Estate indices.

Since October 2011, the FTSE EPRA/NAREIT Global Total Return Index of developed market real estate stocks has rallied 26 per cent in euro terms (17 per cent in US dollars), while in comparison the FTSE All-World Developed Global Equities Total Return Index was up 18 per cent in euros (10 per cent in US dollars) over the past year.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by