9.90 +0.80 (8.79%)
Pre-Market: 7:01AM EST
|Bid||8.00 x 800|
|Ask||9.50 x 1200|
|Day's Range||8.99 - 9.30|
|52 Week Range||8.28 - 15.62|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-2.07|
|Expense Ratio (net)||0.99%|
Like many other sectors, real estate experienced a difficult 2018. Despite starting the year with high home prices and impressively low mortgage rates, climbing interest rates ended up deterring buyers.
Real estate has come a long way since the Great Recession of 2008 that saw market values plummet to remarkable depths after low interest rates and subprime mortgages pushed homes to exorbitant values. During the decade-long bull run in U.S. stocks, low interest rates ruled as the real estate markets were in recovery following the credit crisis in 2008. The depressed values in U.S. real estate also attracted cash buyers from China, but even to the vast majority who used financing to purchase a home, low rates still made real estate attractive.
Real estate stocks and the related exchange traded funds are sensitive to changes in interest and that much is being confirmed this year, but there are ways for risk-tolerant traders to garner short-term profits on both sides of the real estate trade. The Direxion Daily Real Estate Bull 3x Shares ETF (DRN) is an example of a bullish leveraged real estate exchange traded fund. DRN has a bearish cousin, the Direxion Daily Real Estate Bear 3x Shares (DRV) , which attempts to deliver triple the daily inverse returns of that benchmark.
Real estate investment trusts (REITs) and the related exchange traded funds, including the iShares US Real Estate ETF (IYR) , are viewed as vulnerable to rising interest rates. The Federal Reserve has boosted rates three times this year and a fourth rate hike is widely expected in December, but some real estate ETFs have been surprisingly solid in recent weeks. IYR is up more than 1% over the past week, but historical data suggest investors may not want to be holding that fund when November arrives.
Real estate stocks and the related exchange traded funds are sensitive to changes in interest and that much is being confirmed this year. The MSCI US Investable Market Real Estate 25/50 Index, a widely ...
Investors seeking to capitalize on the rising rate scenario in a short span could consider any of the following ETFs given the bearish outlook for the rate sensitive sectors.
A rising rate landscape continues to rock the foundations of the real estate sector, particularly when it comes to homebuilders, which could benefit the Direxion Daily MSCI Real Est Bear 3X ETF (DRV) , but put persistent downward pressure on the Direxion Daily Homebuilders and Supplies Bull 3X Shares (NAIL) . With 30-year mortgage rates already surpassing the 5% mark, the cost to finance a home is getting more expensive, clamping down a housing market that has been lagging even as U.S. equities were in the midst of a historic bull run. Compounding the issue is the benchmark U.S. Treasury yield on the 10-year note reaching a new seven-year high.
The latest round of Chinese tariffs took effect yesterday as the United States and China continue waging their seemingly endless tariff-for-tariff war, which is set to increase the cost of homebuilding and thus, affect homebuilder ETFs like the iShares US Home Construction ETF (ITB), SPDR S&P Homebuilders ETF (XHB) and the Invesco Dynamic Building & Construction ETF (PKB) . DRV seeks daily investment results equal to 300% of the inverse of the daily performance of the MSCI US REIT Index, which is a free float-adjusted market capitalization weighted index that is comprised of equity REITs that are included in the MSCI US Investable Market 2500 Index. As it currently stands, the housing market is already feeling the pangs of rising interest rates crimping homebuyer enthusiasm to take on financing to purchase real estate.
Real estate investment trusts (REITs) and the related exchange traded funds are rebounding. Some of that resurgence is attributable to impressive performances by brick-and-mortar retail stocks, a relevant ...
Direxion is one of the largest issuers of leveraged exchange-traded funds (ETFs), those products that have the power to seduce with the potential for outsized short-term gains but can also be ruinous if held for too long.
At the sector level, real estate is one of the groups believed to be negatively correlated to rising U.S. interest rates. On the other hand, real estate stocks and the related exchange traded funds can ...
Investors seeking to capitalize on the rising rate scenario in a short span could consider these ETFs given the bearish outlook for the sectors.