Guggenheim Investments, a leading player in exchange traded funds (ETFs) announced the first-ever emerging markets real estate ETF which will trade under the symbol (EMRE). Guggenheim has other country-specific real estate ETFs, including a China Real Estate ETF (TAO).
EMRE will charge 0.65% per year and will track the AlphaShares Emerging Markets Real Estate Index. It will monitor the performance of companies and REITs (real estate investment trusts) that derive most of their funds from real estate development or ownership in emerging markets. Developing countries are taking a larger share of global real estate. In 2000, emerging markets’ share was at 2%, and now it is at 11%.
Guggenheim told ETF Trends, “Trends behind that growth include urbanization, increasing consumerism from a rising middle class, rising foreign direct investment, and the creation of investment-friendly vehicles that provide access to the local real estate industry.” The average market value of the 120 securities is just over $5 billion. China has the most weight in the ETF at 35%, followed by South Africa at 12% and the Philippines at 8%.