As we navigate the new era of remote and hybrid work environments, the Select Sector SPDR Trust, a pioneer in the ETF marketplace, continues to provide a compelling gateway into real estate investments through its Real Estate ETF (XLRE). This tool empowers investors to tap into the evolving real estate market by investing in a portfolio of Real Estate Investment Trusts (REITs).
REITs play a crucial role in the real estate sector, offering investors a means to own income-producing properties. By investing in XLRE, one can gain exposure to a diversified portfolio of some of the leading REITs in the U.S. and components of the S&P 500.
A Deep Dive into XLRE's Portfolio*
XLRE's portfolio consists of 31 holdings. Its top holding is Prologis, accounting for 12.15% of the total. As the world's largest industrial real estate company, Prologis operates across 19 countries in North America.
American Tower, holding 8.99% of the portfolio, stands as the second-largest holding. It is a REIT that owns and operates wireless and broadcast communications infrastructure in several countries worldwide.
The top holdings are rounded out by Equinix (7.97%), a multinational company specializing in Internet connection and data centers; Welltower Inc. (4.98%), a REIT that invests in healthcare infrastructure; Public Storage (4.89%), the largest brand of self-storage services in the U.S., and Crown Castle (4.68%), a provider of shared communications infrastructure in the U.S.
Accessible, Affordable, and Varied Investment Opportunities
Collectively, XLRE's top 10 holdings make up 60% of the fund, incorporating a blend of diverse real estate classes. These REITs aim to provide attractive total returns by combining dividend yield with the potential for capital gains. The fund maintains a low expense ratio of 0.10%**.
In short, XLRE presents advisors and investors with the ability to conveniently access various segments of the real estate market at a reasonable cost.
DISCLAIMER: This is a work of research and should not be taken as investment or financial advice. Therefore, Select Sector SPDRs or the publisher is not liable for any decision made based on the publication.
About the Company:
Select Sector SPDR ETFs offer flexibility and customization opportunities. Many investors have similar outlooks, but no two are exactly alike. Select Sector SPDR ETFs let investors select the sectors that best meet their investment goals.
*Holdings & Weightings as of 9/30/23 subject to change
**Ordinary brokerage fees apply
The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes. An investor should consider investment objectives, risks, fees and expenses before investing.
One may not invest directly in an index.
Transparent ETFs provide daily disclosure of portfolio holdings and weightings
All ETFs are subject to risk, including loss of principal. Sector ETF products are also subject to sector risk and nondiversification risk, which generally will result in greater price fluctuations than the overall market. Diversification does not eliminate risk.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF (732-8673) or visit www.sectorspdrs.com. Read the prospectus carefully before investing.
ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is distributor for the Select Sector SPDR Trust.
Company: Select Sector SPDRs
Contact: Dan Dolan*
Address: 1290 Broadway, Suite 1000, Denver, CO 80203
Country: United States
*Dan Dolan is a Registered Representative of ALPS Portfolio Solutions Distributor, Inc. ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is the distributor for the Select Sector SPDR Trust.
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