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Schwab to launch new global real estate fund (SFREX)
Got the news in the mail with invitation to purchase. Although I am interested in this sector, I am not sure if this new fund is the best way. They also have another global real estate fund (SWASX), which is essentially following the index. Any thoughts?
@Kaspa, I have held ARYVX since its inception back in the spring of 2011. I like the diversity this fund brings as far as global real estate goes. I have about 7-8% in that fund as a percentage of my portfolio. The Asia real estate market keeps chugging along including Australia.
SFREX looks interesting as it is a fundamental fund as well. The ER was not posted yet. ARYVX has a ER of 1.2% which seems to be normal for these funds.
If you don't have any real estate exposure in your portfolio this is a good way to go. I think I would take SFREX over a fund that mimics a index as far as global real estate goes.
@Kaspa, I have held ARYVX since its inception back in the spring of 2011. I like the diversity this fund brings as far as global real estate goes. I have about 7-8% in that fund as a percentage of my portfolio. The Asia real estate market keeps chugging along including Australia.
SFREX looks interesting as it is a fundamental fund as well. The ER was not posted yet. ARYVX has a ER of 1.2% which seems to be normal for these funds.
If you don't have any real estate exposure in your portfolio this is a good way to go. I think I would take SFREX over a fund that mimics a index as far as global real estate goes.
I've read conflicting reports/studies that real estate exposure provides real diversification to a portfolio. I'm always tempted but wish I had some hard numbers to support it. Hasn't real estate had a big run up this year?
If you are looking solely at the domestic US market then there would not be much need for a RE fund as the indexes will cover that. The global markets and in particular Asia have done quite well even with govt interference to quell speculation.
The funds have had a good year so far. My fingers are crossed though because at this time last year I was thinking the same thing and in Nov and Dec they gave most of their gains back.
ARYVX gains per M* : YTD= 13.29% , One year = 22.18% , Three year = 13.96%.
I just downloaded the prospectus, and note that this is to be an Index Fund. Here are a few excerpts:
Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment): Management fees 0.40 Distribution (12b-1) fees None Other expenses 0.29 Total annual fund operating expenses 0.69 Less expense reduction (0.20)
Total annual fund operating expenses after expense reduction (*2) 0.49
(*2)The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non- routine expenses) of the fund to 0.49% for so long as the investment adviser serves as the adviser to the fund.
Principal investment strategies: "To pursue its goal, the fund primarily invests in stocks that are included in the Russell Fundamental Global Select Real Estate Index. The Index measures the performance of real estate companies, including real estate investment trusts (REITs), in U.S. and non-U.S. markets, including developed and emerging markets."
"It is the fund’s policy that, under normal circumstances, it will invest at least 90% of its net assets in stocks included in the Index".
Comments
SFREX looks interesting as it is a fundamental fund as well. The ER was not posted yet. ARYVX has a ER of 1.2% which seems to be normal for these funds.
If you don't have any real estate exposure in your portfolio this is a good way to go. I think I would take SFREX over a fund that mimics a index as far as global real estate goes.
The funds have had a good year so far. My fingers are crossed though because at this time last year I was thinking the same thing and in Nov and Dec they gave most of their gains back.
ARYVX gains per M* : YTD= 13.29% , One year = 22.18% , Three year = 13.96%.
Annual fund operating expenses (expenses that you pay each year as a % of the value of your investment):
Management fees 0.40
Distribution (12b-1) fees None
Other expenses 0.29
Total annual fund operating expenses 0.69
Less expense reduction (0.20)
Total annual fund operating expenses after expense reduction (*2) 0.49
(*2)The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (excluding interest, taxes and certain non- routine expenses) of the fund to 0.49% for so long as the investment adviser serves as the adviser to the fund.
Here is the URL for the fund and prospectus download.
Principal investment strategies:
"To pursue its goal, the fund primarily invests in stocks that are included in the Russell Fundamental Global Select Real Estate Index. The Index measures the performance of real estate companies, including real estate investment trusts (REITs), in U.S. and non-U.S. markets, including developed and emerging markets."
"It is the fund’s policy that, under normal circumstances, it will invest at least 90% of its net assets in stocks included in the Index".
Not much more info available as of yet.
Available in a retirement account at Fidelity with low minimums.