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BMO Equal Weight REITs Index ETF (ZRE)
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iShares S&P/TSX Capped REIT Index ETF (XRE)
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Horizons Equal Weight Canada REIT Index ETF (HCRE)
Q: Hello, I would like your opinion of HCRE versus ZRE and XRE. Avantages include the lower MER (0,33%) and no taxable distribution in a cash account, but it has a low trading volume. Thanks.
5i Research Answer:
HCRE is an equal-weight REIT ETF, which has a small AUM of $48.3M, a relatively low MER of 0.33%, and a yield of 5.9%.
ZRE is also an equal-weight REIT ETF, but has a much larger AUM of $583.7M, an MER of 0.61%, and a yield of 5.1%. XRE is not equal-weight, has a large AUM of $1.0B, a yield of 5.4%, and an MER of 0.61%.
ZRE has outperformed XRE over a long period of time, and thus we like the equal-weight approach. While HCRE's MER and yield are relatively attractive, its AUM is quite low, making it more illiquid. Overall, despite its higher MER, we would prefer ZRE over HCRE today.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.