This week we will profile the first of two global Property ETFs. It is also the third and final ETF from the CoreShares stable.
Almost a year ago (18 April 2017), I penned an article on the CoreShares S&P Global Property ETF to bring to the attention of Sharenet’s readers the new opportunity to invest in global listed REITs via a JSE-listed product.
The ETF is still in its infancy having only launched in November 2016, but already boasts almost R270 million in assets under management.
How is the fund put together?
The CoreShares S&P Global Property ETF tracks the S&P Global Property 40 index, an international listed real-estate index made up of the 40 largest (by float-adjusted market capitalisation) property shares spanning the globe.
The fund construction process applies additional filters to take into account liquidity requirements, and only adds underlying shares that trade on developed and well-regulated stock markets.
The index construction methodology is expanded to incorporate additional filters that are applied to ensure that the 40 stocks chosen meet liquidity requirements of the index managers. Further, to be included in the fund, the share must be a dividend-payer, and positive earnings in the most recent financial period are a non-negotiable prerequisite.
Finally, if applicable, a maximum weighting cap of 10% is applied to manage risk of overexposure in the portfolio.