ETF Learning Centre - 4 Reasons To Invest In Real Estate - RBC Global Asset Management

4 Reasons To Invest In Real Estate

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As a physical asset with tangible value and a structure that leads to steady streams of cash flow, real estate has characteristics that are attractive to many investors.

Opportunities for growth within the real estate sector are created over long-term cycles, and vary depending on property type, location, revenue drivers, supply limitations, and valuation.

What are the benefits of investing in real estate?

Infrastructure assets tend to share a number of key attributes that make them attractive for long-term investors seeking income and growth. These include:

Ways to invest

Investors can participate in the income and growth potential of real estate in a number of ways, based on their risk tolerance and objectives. Increasing demand for liquid vehicles that invest in a globally diversified portfolio of real estate securities has led to the advent of publicly traded funds that manage a portfolio of real estate investments, combining the risk-mitigation benefits of publicly traded securities with enhanced global diversification.

For example, the RBC Quant Global Real Estate Leaders ETF (RGRE) provides access to a globally diversified portfolio of real estate investment trusts (REITs) and real estate management and development companies in a single ETF. This ETF also offers:

  • Potential for stable, regular monthly income – expected gross portfolio yield of 4-5%
  • Exposure to global economic growth
  • Low management fee of 0.55%
  • Proprietary rules-based, multi-factor investment approach to maximize risk-adjusted returns

Read our white paper Global real estate: Foundation for your portfolio to learn more about investing in real estate.

To learn more about the benefits of ETF investing, talk to your financial advisor.

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