I'm Investing in Property

Californication

ses6jwg wrote: »

I am looking at getting into a commercial property fund, which are the best?

Looking at New Star, SWIP, and L&G.

Any ideas folks?

If you want UK commercial property, iShares have this ETF of REITs:
http://uk.ishares.com/en/pc/funds/IUKP

They've got Asia, Euro and US ones too. I've got some of all of them. (Although the recent capital increases make the dividend yields look a bit weak.) I can only think it's due to a combination of inflation concerns (REITs have inbuilt leverage in their property holdings) and low money market rates.

--C

ses6jwg

Californication wrote: »

If you want UK commercial property, iShares have this ETF of REITs:
http://uk.ishares.com/en/pc/funds/IUKP

They've got Asia, Euro and US ones too. I've got some of all of them. (Although the recent capital increases make the dividend yields look a bit weak.) I can only think it's due to a combination of inflation concerns (REITs have inbuilt leverage in their property holdings) and low money market rates.

--C

Interesting...

What should I be looking at when researching ETFs and what is the key to finding a good one?

Are they based around the Yield and Nav?

Where is the best place to research and compare then?

Quite like the look of them as they appear to be more flexible than standard funds, but riskier than individual shares...

Californication

ses6jwg wrote: »

Interesting...

What should I be looking at when researching ETFs and what is the key to finding a good one?

Are they based around the Yield and Nav?

Where is the best place to research and compare then?

Quite like the look of them as they appear to be more flexible than standard funds, but riskier than individual shares...

ETFs (Exchange traded funds) are open-ended funds that trade on an exchange in real-time like shares. The simple ones (like the one I mentioned) simply track an index. In this case it's an index of real-estate investment trusts in the UK. You can see yield and NAV values on the iShares website.

They are liquid (unlike open-ended bricks and mortar funds). They are lower risk than buying an individual REIT stock. They should be more risky than an open-ended bricks and mortar fund, because the fund probably doesn't issue debt. Ie, in the fund your 1 GBP invested gets exposure to 1GBP of property. Because the REITs in the ETF issue debt, you essentially get more than 1GBP of property exposure for you 1GBP invested.

--C