Notes on two UK Real Estate ETF’s

If you don’t know much about something, buy the Index.
-old indian saying
This was my first Article about UK Real Estates (link)
The Market has recovered in meantime.
There are 2 ETF’s on the UK Real Estate Market that I have found which are investable for me (german citizen, consorsbank). DB-XTracker doesn’t have an ETF on that special Market segment.
This is  not constituting investment or other advice and is used purely for information purposes. Mostly I use this post to remember myself.

IKUP iShares UK Property UCITS ETF

ISIN: IE00B1TXLS18
The Fund seeks to track the performance of an Index composed of UK listed real estate companies and Real Estate Investment Trusts (REITS).

Additional Information

UKRE iShares MSCI Target UK Real Estate UCITS ETF

The Index aims to measure the performance of the UK real estate
market through exposure to UK Real Estate Investment Trusts (REITs),
property companies and liquid FI transferable securities. (!?)
As REITs are typically investment vehicles which have significant debt
obligations, and REITs and property companies have a risk and reward
profile close to that of an equity security, liquid FI securities are used
within the Index to reduce the impact of debt obligations, volatility
and the performance of equity markets on its returns. The FI
securities are UK inflation linked bonds …

Notes:

Both ETF’s have the same companies/REITs in the same order in the Top 10, The UKRE has some UK I/L GILTs in-between
LAND SECURITIES GROUP REIT PLC
BRITISH LAND CO PLC
HAMMERSON REIT PLC
DERWENT LONDON PLC
SHAFTESBURY PLC
What is also interesting about them is their Yield (I use the numbers provided by iShares)
UKRE 1,76%
IUKP 2,85%
Not that high, is the UK Real Estate Market overvalued?

Bottom Line:

I would chose the IUKP over the UKRE and keep the additional Cash in my pocket (and not as GBP in an iShares ETF). Since the indices went up I will do nothing for the time being.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s