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DLREX (DoubleLine Colony REIT) vs REIT index

I really want to get an REIT investment into my portfolio. I am happy with Doubleline as a company as I have a lot of my portfolio in DSEEX and have been very happy with the returns.

https://doublelinefunds.com/colony-real-estate-and-income-fund/

It seems the investment strategy with DLREX is similar to DSEEX in that they "Maintain a core portfolio of debt instruments that focuses on global fixed income sector rotation while simultaneously obtaining exposure to U.S. REITs through the Colony Capital Fundamental US Real Estate Index. The unique structure of the DoubleLine Colony Real Estate and Income Fund allows investors to potentially simultaneously access returns of the real estate equity markets and fixed income markets. By using an equity index swap, $1 invested in the strategy provides approximately $1 of exposure to each market."

DLREX just rolled out in December 2018 so it doesn't have much history. Another downside is the ER at 1%.

I have found plenty of prior conversations around DSEEX/DSENX but haven't fund any on DLREX. Does anybody have any insight or currently invested in DLREX? What are your thoughts? Or would I be better served going with either an active REIT fund or REIT index fund?

Comments

  • It's only 3 months old. What's to talk about? I wouldn't invest in a fund without a tract record, Especially if it isn't the fund company's expertise. But... I guess sometimes gambling pays off.
  • @guster1212 Thanks for bringing this fund up. I'd never heard of it before. It seems to offer the returns for the REIT index, - expenses, + whatever bond returns Gundlach can provide. Looks like a pretty good bet for beating the REIT index, based on Gundlach's track record.

    Whether now is the moment to buy REITs is another question, to which I have no answer.
  • edited March 2019
    We currently have vnq Vanguard REIT index,

    We held trow price real estates in the past and was happy w it but sold it after 2010

    We actively holding O and Duke Realty in our holdings
    If you are looking for high yield high rewards risky REIT then buy PBA, oil enery pipeline REIT... was recommended by our cpa many yrs ago and bought it... Very happy w it so far
    I would spread your funds in several funds etf and possible stocks/equities reits if you are interested

    Good luck
  • DLEUX shows that their approach(es) do not necessarily apply elsewhere readily.
  • edited March 2019
    We bought O 3 yrs ago, dba after 2012, Duke Realty In 2012. Vnq 14 months ago. Unclear when is next market crash but we do dca slowly into vnq when have enough dividends income the past yr.

    You may need to have short fuse sell button if not too comfortable (in just in case sh%t hit the fan) ...

    We are not market investors but looking for long term investments... Imho those vehicles we have maybe good ones to Hold Long term.

    Igr is another emergent em international REIT maybe wotlrth while take a look at

    Let us know what you may do... Maybe buy few funds w good management teams and etf same time and divided evenly

    I think Sp500 has 12 or 14%REITS holding in them which maybe the appropriate /right reits exposure for me

    https://www.barchart.com/stocks/indices/sp-sector/real-estate
  • Thanks everybody. I really appreciate the feedback. I’m really glad I found this board!
  • you have looked intensively into FRIFX, right?
  • Also, I wrote an MFO Launch Alert about DBRIX this month, which you can reference, as you do further research. (I'm not sure you've seen it.)

    FRIRX is a very good fund with a lot to recommend it, an excellent suggestion from davidrmoran, and definitely needs to be considered.

    DBRIX
  • Sorry. DBRIX link didn't work. Just go to the March Commentary to find it.

    :-
  • edited March 2019
    Welcome @guster1212
    Not knowing, your query suggests you may want more exposure to this sector. Broad equity sector investments, as with SPY or SP-500 indexes indicates from 3-9% exposure to real estate.

    The traditional REIT index and the "new" Colony Capital REIT index are different critters; based upon my informally trained view. The below link with let one review the "new" REIT benchmark, as well as the info at the MFO link provided by Ted. It appears these 2 benchmarks are destined to travel different real estate total returns over a long time frame.

    Colony Capital REIT index

    This chart link provides a brief overview of returns for 3 real estate funds. Cohen and Steers is referenced, due to its long life of active managed real estate investments, as well as providing excellent returns. The Pimco fund is referenced in that I believe it still uses "magic sauce" to attempt to boost the return and FRIFX is referenced as it is mentioned in this thread. FRIFX is a stand alone for the most part in this investment style, as the fund has always traveled about a 50/50 mix of real estate related bond/equity holdings. I don't know of another real estate fund invested in this manner.

    Magic sauce = derivatives, and other methods aside from the fund equity holdings.

    PETAX, although listed as real estate, is a strange brew of other, too. COMPOSITION here.

    ---Click PETAX for chart
    PETAX CSRIX FRIFX chart from 2003 to date

    Brief summary, IMHO; is that time will tell where the "new" real estate index will be of more or less value and how the folks at Doubleline play with whatever they are allowed to do to enhance the return over and above the benchmark. Course, there remains real estate indexes ( as with FSRNX which have an expense cost of .07%).
    Sidenote: During the dark days of the market melt, from April, 2007 to April 2009; CSRIX dropped about -60% and FRIFX about -30%.

    Et al. Please correct my understanding of the traditional and new REIT index/benchmark, as needed; or incorrect statements......didn't proof read this today.
    My 2 cents worth. Away now, to college basketball.

    Regards,
    Catch
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