Property & Infrastructure Funds Real Estate Investment Trusts (REITs)

Haha. Yes I get your point. It would be interesting to see how much they lend on CBA shares!
"With a CommSec Margin Loan you can borrow against over 1900 approved shares and managed funds"
There are 2400 odd securities on the ASX so 500 odd do not make the cut. There are way more Small Caps than that so it must be another measure?
"We will automatically calculate its lending value, which determines the amount that you can borrow."
Does not go into it further than that. So another cull happens here. This will be the LVR type adjustment I would imagine.

I wonder what the interest rate is?

 

Thanks for that! Wow that is a high rate. You would really have to know what you are doing. Or as every punter investing on the ASX says. "This is a SURE thing you cannot lose"

 

From memory SLF high yield in recent 12 months is due to Westfield spin off? Expected future yield is much less:

 

Bugger. I thought it looked funny. I am not a fan of any of the other Australian REIT ETF's either. It is looking more like being a stock picking exercise then.

 

Thanks mate. Given it’s size and liquidity alone it’s not something I would normally entertain investing in. But having seen it mentioned a few times elsewhere as a “safe” REIT I thought I would bring it up here to see what the verdict is. Although I know bugger all about property trusts I find the subject interesting. Like to keep learning stuff given investing is an interest.

I can certainly see how yield hungry investors would find them appealing. Having owned the Areit index fund (SLF) before and during the GFC the experience has no doubt tainted my view of them. Such is Recency bias. But reading the excellent conversation here is very helpful in removing such bias and keeping an open mind.

 

Cap weighted AReit index ETFs being SLF and VAP will be very similar except that VAP has a longer tail (but small in value) given it covers ASX 300. SLF covers ASX 200.

Trouble with AReit Index is huge concentration, even much worse than than ASX in general with miners and banks. That said most active Mgrs still struggle to beat the index.

DJRE global REIT index (DJRE) is obviously much more broadly diversified. But it’s unhedged.

 

I have that one written down to research as part of the global exposure even though it is based here. Again yield is under 4%. Not really good enough for me as I need an income weighting at 6% av yield. But will look at it. If it's any interest this is my ETF shortlist. Have only done very basic work on these. There are double ups and some yield harvesting ones give up capital to achieve supersized yields so it's a balancing act. And I also want to go through the US based ones as well. So very preliminary.

Annual yield Franking Mgmt cost
AUMF iShares Edge MSCI Australia Multifactor ETF Smart Beta iShares 8.06% 25.13% 0.30%
CETF VanEck Vectors ChinaAMC A-Share ETF Index Tracking VanEck 7.10% 0.00% 0.60%
FDIV VanEck Vectors S&P/ASX Franked Dividend ETF Smart Beta VanEck 6.06% 85.76% 0.35%
GEAR BetaShares Geared Australian Equity Fund (Hedge Fund) Smart Beta BetaShares 8.26% 53.20% 0.80%
HACK BetaShares Global Cybersecurity ETF Index Tracking Betashares 7.10% 0.00% 0.67%
IHOO iShares Global 100 AUD Hedged Index Tracking Blackrock 8.08% 0.00% 0.43%
MVOL iShares Edge MSCI Australia Minimum Volatility ETF Smart Beta iShares 7.27% 25.49% 0.30%
QCB BetaShares Commodities Basket ETF - Currency Hedged (Synthetic) Index Tracking BetaShares 9.50% 0.00% 0.69%
QOZ BetaShares FTSE RAFI Australia 200 ETF Smart Beta BetaShares 6.66% 29.63% 0.40%
RARI Russell Australian Responsible Investment ETF Smart Beta Russell Investments 6.31% 43.40% 0.45%
RDV Russell High Dividend Australian Shares ETF Actively Managed Russell Investments 7.20% 67.30% 0.34%
SLF SPDR S&P/ASX 200 Listed Property Fund Index Tracking State Street Global Advisors 8.47% 0.61% 0.40%
SYI SPDR MSCI Australia Select High Dividend Yield Fund Smart Beta State Street Global Advisors 6.26% 81.19% 0.35%
VAP Vanguard Australian Property Securities Index ETF Index Tracking Vanguard 7.96% 0.02% 0.23%
VHY Vanguard Australian Shares High Yield ETF Smart Beta Vanguard 8.90% 50.56% 0.25%
WDIV SPDR S&P Global Dividend Fund Smart Beta State Street Global Advisors 7.30% 0.23% 0.50%
YMAX BetaShares Australian Top 20 Equity Yield Maximiser Fund Smart Beta BetaShares 9.41% 49.06% 0.79%
ZYAU ETFS S&P/ASX 300 High Yield Plus ETF Smart Beta ETFS 6.19% 49.89% 0.35%

 

Those that "know" what they are doing would find a better rate. Not sure how they go with actually picking stocks however.

 

Sounds like a good way for the bank to make money, not me. Even with a better rate that is alot of risk for a potential extra few net percent return. Not for me. After a 90% correction yes maybe.

 

How good is investing in REITs as a growing income stream? I can't find any good sources/data on this.

I'm mainly looking to invest mainly in A200/LICs, and I'm interested in DJRE as it would offer some global diversification.

 

I've used Commsec LVR the same way, although I'm not sure how much research goes into those figures. Why are they all multiples of 5?

 

Just checked in on DJRE



And decided to check on some REIT's

 

Saw in one if the videos on Youtube where QCB is mentioned as good time to get in as comodities are @ the near low...

(BetaShares Commodities Basket ETF - Currency Hedged (Synthetic) Index Tracking BetaShares 9.50% 0.00% 0.69%)

 

Care may be required.

 

There is too much uncertainty for me with commodities at present. Never catch a falling knife. Maybe wait for a sustained change of trend? My preference is to miss out on some of the gains rather than seeing it drop further and further. Things are moving so quickly these days and volatility is huge. Who would of thought the US markets would hit all time highs after the March drop and now they are dropping again.
Commodities need high growth in economies providing support. It just dodgy now. The outlook is not great and it is an aggressive move to call the bottom in my opinion.