The Federal Reserve’s interest rate hikes to combat high inflation and consecutive economic contraction have kept the mortgage rates volatile. The 30-year fixed-rate mortgage averaged 4.99% in the week ending August 4, down from 5.3% the week before. But the rate is significantly higher than 2.77% a year ago.
This is expected to boost the sentiment of investors and homeowners. Consequently, investing in ETFs that offer significant exposure to this market could be an ideal decision now.
SRET tracks the performance of REITs that rank among the highest yielding REITs globally, as determined by Solactive AG, the underlying index provider. The fund invests at least 80% of its total assets in the underlying index’s securities, American Depositary Receipts (ADRs), and Global Depositary Receipts (GDRs).
The fund has approximately $347.83 million assets under management (AUM). SRET’s major holdings include W. P. Carey Inc. (WPC), Gaming and Leisure Properties, Inc. (GLPI), and Getty Realty Corp. (GTY).
The ETF distributes $0.60 in dividends annually, translating to a yield of 7%. Its four-year average dividend yield is 8.6%.
XLE has a 0.58% expense ratio, higher than the 0.43% category average. The fund has gained 4.2% over the past month and is currently trading at $8.53, 13% above its 52-week low of $7.55.
It is no surprise that SRET has an overall A rating, which equates to Strong Buy in our POWR Ratings system.
Cambria Global Real Estate ETF (BLDG)
BLDG seeks income and capital appreciation by investing primarily in the securities of domestic and foreign companies engaged in the real estate sector and real-estate-related industries that exhibit favorable multi-factor metrics, such as value, quality, and momentum, as per a quantitative methodology developed by Cambria Investment Management, L.P. It holds more than 25% of its assets in real estate-related industries.
The fund has approximately $18.23 million AUM. BLDG’s major holdings include U.S. Dollar, Yeni Gimat Gayrimenkul Yatirim Ortakligi A.S. (YGGYO.IS), and Essex Property Trust, Inc. (ESS).
The ETF distributes $2.93 in dividends annually, translating to a yield of 1.58%. Its four-year average dividend yield is 4.9%.
BLDG has a 0.59% expense ratio, higher than the 0.44% category average. BLDG has gained 3.4% over the past month and is currently trading at $27.85, 7.3% higher than its 52-week low of $26.05. The ETF’s net inflows have totaled $5.17 million over the past year.
BLDG’s strong fundamentals are…
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