5-Star ETFs Poised to Pop: SPDR Dow Jones International Real Estate

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the SPDR Dow Jones International Real Estate ETF (NYS: RWX) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at SPDR Dow Jones International Real Estate and see what CAPS investors are saying about the ETF right now.

SPDR Dow Jones International Real Estate facts


December 2006

Total Assets

$2.1 billion

Investment Approach

Seeks to replicate the Dow Jones Global ex-US Select Real Estate Securities Index, which is designed to measure the performance of publicly traded real estate securities in countries excluding the U.S.

Expense Ratio


3-Month / 1-Year / 3-Year Returns

(7.1%) / (11.9%) / 14.1%

Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight

Brookfield Asset Management (NYS: BAM) (6.2%)

Dividend Yield



iShares S&P Developed ex-U.S. Property Index (NYS: WPS)
SPDR Dow Jones Global Real Estate (NYS: RWO)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 95% of the 96 members who have rated SPDR Dow Jones International Real Estate believe the ETF will outperform the S&P 500 going forward. These bulls include All-Stars Marc022 and marc64, both of whom are ranked in the top 15% of our community.

Having gotten on board a couple of years ago, Marc022 nicely summed up the bull case:

This gives good international exposure in the real estate sector. The fees are low, but not great. Certainly better than other intl index funds or ETFs. I prefer the concentration mix of this ETF.

SPDR Dow Jones International Real Estate even sports a rather juicy dividend yield of 10.6%. That's higher than that of other global real estate ETFs like iShares FTSE EPRA/NAREIT Dev RE ex-US (6.8%), iShares S&P Developed ex-U.S. Property Index (6.7%), and SPDR Dow Jones Global Real Estate (7.7%).

CAPS All-Star marc64 elaborates on the bull case:

The international scale of this investment vehicle avoids the risk of any regional real estate meltdown(s), and capitalizes on the huge sloshing sound as realty cash (especially from the USA) flees freely from region to region seeking safer real estate havens. ...

I'm betting Investors with disposable capital will eventually conclude that one good, safe place to park their spare billions is in ... nice ol' rent producing real capital outside the USA. ...

Basically, the cha-ching! sound you hear is the obscenely wealthy overpaying for their next hot lease ... in a newly hot market. High end development is done with high end reality companies, just the types reflected in this mix.

What do you think about SPDR Dow Jones International Real Estate, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackSPDR Dow Jones International Real Estate?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Brookfield. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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