1 / 4

My (Al Z) Approach to REITs: ETFs

My (Al Z) Approach to REITs: ETFs. I use US and International REITs as 2 of the 10 asset classes I allocate my funds across Assume non-correlated to other assets (in general true - not so true since the ‘07 time frame)

erma
Download Presentation

My (Al Z) Approach to REITs: ETFs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. My (Al Z) Approach to REITs: ETFs • I use US and International REITs as 2 of the 10 asset classes I allocate my funds across • Assume non-correlated to other assets (in general true - not so true since the ‘07 time frame) • Include are R.E. related items: e.g., home builders, infrastructure builders, mortgage REITs • I take a “Core and Explore” approach - limited by REIT selections in 401Ks, etc. • Core via ETFs, CEFs or MFs; Explore with specific REITs • Instruments: CSRIX, ITB, RNP, VNQ/IYR, REZ, TAO, RWX, IGF, PXR, REM • Selection of ETFs in this area is somewhat limited (short histories, limited liquidity ($1M/day), multiple look-alikes) • For the core: I time with a 10 month SMA to be in REITS or in cash/bonds • If long REITS I choose the top 3-5 ETFs based on near-term gains (combination of 1, 3, 6 and 12 month gains) • I also have a “Best REIT ETF” based on Sector Surfer (see next page) AAII SV

  2. My (Al Z) Approach to REITs: ETFs Reasonable AAII SV

  3. My (Al Z) Approach to REITs: Stocks • For the “explore” part of the portfolio I choose 12 US REITs. • These 12 REITS are timed via a 10 month SMA on the IYR • These REITs are chosen by what a friend calls his “Jack Welch screen” • Daily trading volume > $1M (liquidity test) • Take the Top 12 REITs by their revenue (“Buy the Biggest”) • Rotate/update the 12 REITS once per year (on 12/31/xx) or whenever the timing signal signals a buy condition • Following slide shows the performance of IYR, the timed IYR and the timed 12 REIT portfolio • I have been running this portfolio for 2+ years at present getting similar results to the back test. AAII SV

  4. My (Al Z) Approach to REITs: Stocks Key: Black IYR B&H Blue IYR Timed Red 10 12 REITs by Rev Timed MDD 22% Calmar: 0.55 AAII SV

More Related