International Real Estate added

I added international REITs into my portfolio in June 2006. Several articles have mentioned the added diversification benefits of having international REITs as opposed to just having domestic REITs. A recent post on the Diehards forum also discussed this. In addition, it appears that there are certain tax advantages to holding international REITs in a taxable account (due to the foreign-tax credit).

There are not many international real estate funds to choose from, and there is none from Vanguard. The fund I selected was the Alpine International Real Estate equity fund (EGLRX). This fund has about 40% allocation in Europe, 30% in Asia, 28% in North America and 2% in Latin America. The expense ratio of this fund is 1.18%.

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Currently, I am targetting this fund to have a 1:3 ratio of my overall REIT allocation, i.e. 1 part of international REIT (ELGRX) to 3 parts of domestic REIT (VGSIX). The new allocation will be reached by re-allocating my VGSIX assets to EGLRX in the next few months.

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    5 Comments

    1. choozm

      Is this an active fund or a passive index fund?

      Reply
    2. indexfundfan

      This is an active fund. As far as I know, there are no easily accessible passive index fund in this category

      Reply
    3. indexfundfan

      Interestingly, there is now a global real estate index fund:

      Link to fact sheet.

      Reply
    4. Pingback: International Real Estate - A Re-think « Indexfundfan’s blog

    5. Pingback: Indexfundfan @ Indextown » International Real Estate - A Re-think

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