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  5. ZRE: Looking at the REIT space given what seems to be a general decline in share prices of most real estate ETF's and general real estate related shares over the last few years. [BMO Equal Weight REITs Index ETF]
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Q: Looking at the REIT space given what seems to be a general decline in share prices of most real estate ETF's and general real estate related shares over the last few years. I already own DIR.UN and now I'm looking to add a REIT to the mix that offers at least a 6% dividend. I know you also like GRT.UN and CAR.UN. What are your thoughts on MREL and HGR as ETF options? Can you compare the two for me? Also would you suggest an alternate ETF to those tow ... or even a single REIT stock that you think can do well over the next 2-3 years and offer 5% dividend and capital protection.
Asked by Randy on February 03, 2025
5i Research Answer:

HGR is $56M in assets, focusing on global REITs. Management fee is 0.85%, MER 1.36%. Five year return is negative 3.95%. One year +7.56%. Indicated yield 9.38%. It is 72% US right now, 8% Singapore. MREL is $138M, fees 1.28%, 5 year +2.64%, one year +7.70%. Indicated yield 7.59%. The difference here is 72% exposure to Canada and 22% US. It is not a global fund. Even the small US exposure would have helped performance. It is hard to compare single companues to a diversified REIT. We would be comfortable with MREL for general exposure. ZRE is a much much larger ETF in the sector, but it has both lower yield and weaker returns than MREL.

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.

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