Ishares Ftse Epra/Nareit Global Real Estate Ex-U.S. Index Fund
Introduction
Real estate is a popular investment option for many individuals, as it provides an opportunity to diversify their portfolio and generate passive income. However, investing in real estate can also be challenging, especially if you are not familiar with the market. That's where exchange-traded funds (ETFs) come in. In this article, we will take a closer look at the Ishares Ftse Epra/Nareit Global Real Estate Ex-U.S. Index Fund, also known as IFGL.
What is IFGL?
IFGL is an ETF that tracks the performance of the FTSE EPRA/NAREIT Global ex-US Index. This index measures the performance of publicly traded real estate companies in developed and emerging markets, excluding the United States. The ETF invests in real estate companies in countries such as Japan, Australia, the United Kingdom, and Canada, among others.
Why Invest in IFGL?
There are several reasons why you might consider investing in IFGL:
- Diversification: Investing in IFGL allows you to diversify your portfolio by investing in real estate companies in different countries and regions.
- Low Costs: IFGL has a low expense ratio, which means that you pay less in fees compared to other investment options.
- Passive Investing: IFGL is a passive investment, which means that it tracks the performance of the underlying index. This approach can be less risky compared to active investing, where a fund manager tries to beat the market.
How Does IFGL Work?
IFGL invests in real estate companies that are included in the FTSE EPRA/NAREIT Global ex-US Index. The ETF follows a passive investment strategy, which means that it aims to replicate the performance of the index. The ETF invests in a range of companies, including real estate investment trusts (REITs), real estate development companies, and property management companies.
Performance
IFGL has performed well in the past, with an average annual return of around 5% over the past five years. However, past performance is not a guarantee of future results, and it's important to remember that investing always carries some risk.
Risks
Like any investment, IFGL carries some risks that you should be aware of:
- Market Risk: The performance of IFGL is tied to the performance of the underlying index, which can be affected by market conditions such as economic downturns or geopolitical events.
- Currency Risk: IFGL invests in companies in different countries, which means that it is exposed to currency fluctuations. This can affect the value of your investment.
- Interest Rate Risk: IFGL invests in real estate companies, which are often sensitive to changes in interest rates. This can affect the value of your investment.
How to Invest in IFGL
Investing in IFGL is easy. You can buy shares through a brokerage account, such as E*TRADE or Charles Schwab. The ETF is listed on several stock exchanges, including the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSE).
Conclusion
IFGL is a popular ETF that provides exposure to real estate companies in developed and emerging markets, excluding the United States. Investing in IFGL can help you diversify your portfolio, while also offering low costs and a passive investment strategy. However, it's important to remember that investing always carries some risk, and you should carefully consider your investment goals and risk tolerance before investing in IFGL.