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
The Fund seeks to track the performance of an Index composed of UK listed real estate companies and Real Estate Investment Trusts (REITS).
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 debtobligations, and REITs and property companies have a risk and rewardprofile close to that of an equity security, liquid FI securities are usedwithin the Index to reduce the impact of debt obligations, volatilityand the performance of equity markets on its returns. The FIsecurities are UK inflation linked bonds …
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
What is also interesting about them is their Yield (I use the numbers provided by iShares)
Not that high, is the UK Real Estate Market overvalued?
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.