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 Responses to “International Real Estate added”

    1. choozm Says:

      Is this an active fund or a passive index fund?

    2. indexfundfan Says:

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

    3. indexfundfan Says:

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

      Link to fact sheet.

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

      [...] In June, I started adding international real estate funds into my portfolio. The assets are held in the taxable account. I first added the Alpine International Real Estate Equity fund (EGLRX) and followed by the Fidelity International Real Estate fund (FIREX). Both funds are nicely up by about 8% presently. [...]

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

      [...] In June, I started adding international real estate funds into my portfolio. The assets are held in the taxable account. I first added the Alpine International Real Estate Equity fund (EGLRX) and followed by the Fidelity International Real Estate fund (FIREX). Both funds are nicely up by about 8% presently. [...]