WisdomTree’s ex-US real estate ETF is getting a revamp
Jhe WisdomTree Global ex-US Real Estate Fund (DRW) is set to undergo some big changes in April, including a name change, ticker change, and index change as part of a rebranding for the fund.
The fund will move to WisdomTree New Economy Real Estate Fund (WTRE), according to the fund restructuring FAQ on the WisdomTree website. DRW currently tracks the WisdomTree Global ex-US Real Estate Index, but when it becomes WTRE it will track the CenterSquare New Economy Real Estate Index and invest in the US.
This new index will also draw from a global pool of equity securities of companies that derive a significant portion of their income from real estate or are real estate investment trusts (REITs), including those that are ADRs. Included businesses must derive at least 75% of their revenue from the rental of real estate or the provision of services or goods to residential and commercial owners. These goods and services must be related to the management, maintenance, rental, rental, sale or development of real estate.
Stocks are screened first for ESG factors, then are screened for their use of technology and the revenue they generate by being directly involved or renting real estate to tenants who work in research and development, telecommunications or other technology and life science industries. – related fields. They are further selected for their level of exposure to e-commerce, science and new economy logistics such as supply chain, with the index including the highest rated stocks.
The index eliminates overleveraged companies with debt to total market capitalization greater than 70%, then overweights high-growth, high-value companies that focus on technology, with no stock having a weighting greater than 7. 5%.
Companies must be listed on national stock exchanges in the United States, Australia, Canada, Europe, Hong Kong, Israel, Singapore or the Tokyo Stock Exchange to be included in the index.
As of January 20, country exposures for the index were US 60.4%, UK 8.2%, Australia 7.7%, Japan 5.9%, Singapore at 5.1%, Spain at 4.0%, Canada at 2.7%, China at 2.6%, Switzerland at 0.9%, Hong Kong at 1.0%, Italy at 0.9% and Belgium at 0.7%, according to the index website.
Sector exposure over the same period for the index was Logistics/Supply Chain at 42.0%, Towers at 21.4%, Data Centers at 14.3%, Offices at 10.7%, life sciences at 4.8%, hospitality at 4.1% and diversification at 2.7%. .
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