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Real Estate Select Sector SPDR Fund ETF (NYSE:XLRE)fall down 2.83% Better Q2 performance on the back of weak April, while S&P 500 gains overall 4.1%.
The fund pulled back in April as market participants slashed interest rates XLRE retreats after hawkish Fed cuts forecasts 8.63% current month.
There was some relief over the next two months, but not enough to make up for the losses in April. The index rose 5.17% May and 0.76% After the release of economic data in June, hopes for an interest rate cut were rekindled.
XLRE recorded inflows of $69.01 million in the second quarter, compared with $484.73 million in the previous quarter.
Real estate services company CoStar Group (CSGP) is the biggest loser, falling 23.25% From the end of season one. Meanwhile, healthcare REIT Ventas (VTR) emerged as the winner, advancing 17.73%.
Performance by segment
Real estate management and development was the sub-industry with the largest decline. 16.98% From last season. Industrial REITs follow with losses 13.76% the value of.
Healthcare REITs and residential REITs were winners, adding 11.37% and 8.75%respectively.
Top 5 S&P 500 real estate performers
- Sales (Video Recorder) +17.73%
- Iron Mountain(IRM) +11.73%
- Well Tower (WELL) +11.57%
- Avalon Bay Community (AVB) +11.49%
- Essex Property Trust (ESS) +11.19%
Ranked among the bottom 5 of the S&P 500 real estate companies
- Costa Group (CSGP) -23.25%
- Weyerhaeuser(WY) -20.94%
- AmBo(PLD) -13.75%
- Host Hotels & Resorts (HST) -13.06%
- SBA Communications (SBAC) -9.41%
Analysts’ expectations
“There are opportunities and growth potential in the REIT space,” Seeking said. “Office and apartment spaces are still the largest players and there are some serious issues. However, areas such as healthcare, industrial, multifamily and data centers are emerging. Meaningful growth.
“While I do see the potential for interest rates to fall, I am less convinced that rates will stay down. Alternatively, rates could continue to fall, but for the ‘wrong reasons’ of a recession. If that is the fundamental reason for the decline in interest rates , stocks overall don’t look good.
SA contributor REITer’s Digest said: “XLRE is a core fund for investors seeking exposure to real estate companies. XLRE focuses primarily on equity REITs, adding investments in smaller real estate-related companies to supplement the portfolio.”
On average, SA analysts rate the fund a Buy.
What do quantitative indicators say?
SA’s Quantitative Ratings system rates the Real Estate Select Sector SPDR Fund ETF a Hold, with a score of 2.78 out of 5.
The system assigns ETFs C+ (momentum), A (fees), C- (dividends), D+ (risk), and A+ (liquidity).
