Q: Hello 5i team,
I currently have XRE for real estate coverage in my TFSA for income. I was thinking of switching over to ZRE since it gives a slightly better payout.
I was wondering if there is any advantage for either of these ETFs? Aside from stock purchase limitations (XRE is capped, ZRE is equal weight), does one hold a better real estate portfolio overall?
Thanks,
Andrew
I currently have XRE for real estate coverage in my TFSA for income. I was thinking of switching over to ZRE since it gives a slightly better payout.
I was wondering if there is any advantage for either of these ETFs? Aside from stock purchase limitations (XRE is capped, ZRE is equal weight), does one hold a better real estate portfolio overall?
Thanks,
Andrew
5i Research Answer:
We would not consider the differences overly material. Performance is close, and really the main difference is exposure. CAR.UN is 13% of XRE and RIO.UN is nearly 12%. For ZRE the similar exposure is less than 5% and 4.7%, respectively.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.