Charles Schwab Investment Management Inc., of San Francisco, will expand its index mutual fund lineup with the launch of the Schwab Fundamental Global Real Estate Index Fund (SFREX), Schwab announced yesterday. The new fund reportedly is the only U.S.-based real estate fund to apply the Russell Fundamental Index Series to a broad-based, global portfolio of real estate securities.
The new fund will track the Russell Fundamental Global Select Real Estate Index. The index comprises more than 200 real estate companies in 20 countries and measures the performance of residential and commercial real estate companies and REITs in U.S. and non-U.S. markets, including developed and emerging markets, using a fundamentally weighted methodology.
Products using fundamentally weighted strategies weight securities based not on market capitalization, but instead on economic factors such as adjusted sales, retained operating cash flow and dividends plus buybacks. (More detailed information on top holdings, performers and countries relative to the Russell Fundamental Global Select Real Estate Index can be found here.)
“This new addition to Schwab’s index mutual fund family marries the diversification and dividend potential of global real estate with the intelligence of the Fundamental Index methodology, which we believe is a powerful combination,” said John Sturiale, senior vice president of product management at Charles Schwab & Co. Inc., said in a release.
Agnes Hong, managing director and head of passive equity strategies for Charles Schwab Investment Management, leads the portfolio management teams of Schwab’s ETFs and passive equity funds, which include the Schwab Fundamental Index Funds.
Ferian Juwono, managing director and senior portfolio manager for CSIM, is responsible for the day-to-day co-management of these funds.
“The Schwab Fundamental Global Real Estate Index Fund will help meet investor demand for passive yet liquid real estate exposure,” Ben Carlos Thypin, director of market analysis at Real Capital Analytics, commented to Commercial Property Executive. “Investors have had access to such opportunities for decades via the REIT market, and funds like this represent an evolution in the publicly traded real estate investment market.”
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Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.