iShares DJ Real Estate Trading
The iShares DJ Real Estate ETF Defined and Explained
The iShares Dow Jones U.S. Real Estate Index ETF is an exchange-traded fund that invests wholly in real estate investment trusts (REITs). REITs are companies that invest in either property or mortgages. This ETF gives investors a liquid way to invest in the real estate market. REITs often pay high dividends, funded from rents or mortgages. Some REITs even hold actual property in their portfolios as assets.
iShares DJ Real Estate ETF Trading Prices/Rates
ETF Traders can find iShares Dow Jones U.S. Real Estate Index ETF prices online and in all major newspapers. Although it might seem like this ETF would be interest-rate sensitive, the ETFs correlation to the bond market is actually negative. The iShares Real Estate Fund (IYR) invests primarily in equity REITs. Because of this, the fund isn't as closely tied to interest rates.
iShares DJ Real Estate ETF Trading Software
Knowing what is going to happen in the market is critical to profitable ETF trading. VantagePoint software forecasts the iShares Dow Jones U.S. Real Estate Index ETF high and low for the next day with a very high accuracy, so you'll know where to put your stops and whether to tighten up on them or get out of the trade immediately.
Using forecasts of market trend direction in conjunction with predicted highs and lows greatly increases the potential for successful iShares Dow Jones U.S. Real Estate Index ETF trades. VantagePoint even allows you to visualize forecasts and indicators graphically on your computer for ease of use.
iShares DJ Real Estate ETF Trading News
Getting news for the iShares Dow Jones U.S. Real Estate Index ETF is done through most major newspapers and online. The final close price is given as well as trends. However, the liquidity in the iShares Dow Jones U.S. Real Estate Index ETF makes for frequent changes. The Australian Associated Press reports on the major events in the trading market, making it a valuable resource for investors.
iShares DJ Real Estate ETF Trading Information
The value of a fund that invests in property rather than in mortgages is based on the underlying value of the firm's property portfolio as well as the rental income it receives from that portfolio. Many REITs invest in commercial entities like shopping malls or hotels. These properties’ values are highly correlated to the economy, as leisure travel and shopping prices tend to fluctuate along with our nation's economic health.
iShares DJ Real Estate ETF Trading Advice
Mortgage-based REITs will move along with the economy because the ability of the owners to service their mortgage payments will depend on the underlying economy. More important though is the direction of interest rates, which has a direct impact on the value of the iShares Dow Jones U.S. Real Estate Index ETF. Higher interest rates lead to lower prices, just like in any bond.