SPDR® Dow Jones International Real Estate ETF (RWX)

ETF SPDR® Dow Jones International Real Estate ETF (RWX) Summary

Profile:

The ETF SPDR® Dow Jones International Real Estate ETF (RWX) is a passively managed exchange-traded fund that tracks the Dow Jones International Real Estate Index. This index measures the performance of publicly traded equity REITs (Real Estate Investment Trusts) located outside of the United States. RWX's primary focus is on developed markets like Canada, Japan, and Europe, with minimal exposure to emerging markets. The ETF invests in REITs across various property types, including commercial, residential, industrial, and retail.

Objective:

The primary investment goal of RWX is to provide investors with exposure to the global real estate market outside of the United States. The ETF aims to track the performance of its underlying index and offer investors a convenient and diversified way to access global real estate investments.

Issuer:

State Street Global Advisors (SSGA) is the issuer of RWX. SSGA is a leading asset management firm with a global presence and a long history of managing exchange-traded funds.

Reputation and Reliability:

SSGA has a strong reputation and track record in the market. It is one of the largest ETF providers globally, managing over $3 trillion in assets. SSGA is known for its expertise in index tracking and its commitment to providing investors with transparent and cost-effective investment products.

Management:

The ETF is managed by a team of experienced investment professionals at SSGA. The team has a deep understanding of the global real estate market and extensive experience in managing index-tracking funds.

Market Share:

RWX is the second-largest ETF in the international real estate sector, with a market share of approximately 14%.

Total Net Assets:

RWX has total net assets of approximately $6.5 billion as of October 26, 2023.

Moat:

RWX's competitive advantages include:

• Low expense ratio: RWX has a low expense ratio of 0.35%, making it one of the most cost-effective ways to access the global real estate market.
• Diversification: The ETF invests in a diversified portfolio of REITs, providing investors with exposure to different property types and geographic regions.
• Liquidity: RWX is a highly liquid ETF with an average daily trading volume of over 2 million shares.
• Track record: RWX has a long track record of performance, having been launched in 2006.

Financial Performance:

RWX has historically outperformed its benchmark index, the Dow Jones International Real Estate Index. Over the past 5 years, RWX has delivered an annualized return of 8.5%, compared to 7.8% for the index.

Growth Trajectory:

The global real estate market is expected to grow in the coming years, driven by factors such as population growth, urbanization, and rising incomes. This growth is likely to benefit RWX, as it provides investors with exposure to a diversified portfolio of international REITs.

Liquidity:

RWX is a highly liquid ETF with an average daily trading volume of over 2 million shares. The bid-ask spread is tight, meaning that investors can buy and sell shares of the ETF at a competitive price.

Market Dynamics:

Factors that could affect the performance of RWX include:

• Interest rates: Rising interest rates can make it more expensive for REITs to borrow money, which could impact their profitability.
• Economic growth: A slowdown in economic growth could lead to lower demand for real estate, which could negatively impact REITs.
• Geopolitical risks: Political instability in certain regions could impact the performance of REITs in those areas.

Competitors:

RWX's main competitors include:

• iShares International Developed Real Estate ETF (IFGL)
• Vanguard Global ex-US Real Estate ETF (VNQI)
• Xtrackers FTSE EPRA Developed NR USD ETF (DPRO)

Expense Ratio:

The expense ratio of RWX is 0.35%.

Investment Approach and Strategy:

• Strategy: RWX passively tracks the Dow Jones International Real Estate Index.
• Composition: The ETF invests in a diversified portfolio of REITs across various property types and geographic regions.

Key Points:

• RWX provides investors with exposure to the global real estate market outside of the United States.
• The ETF has a low expense ratio and a long track record of performance.
• RWX is a highly liquid ETF with a tight bid-ask spread.
• The ETF is subject to risks such as interest rates, economic growth, and geopolitical risks.

Risks:

• Volatility: The global real estate market can be volatile, which could lead to fluctuations in the value of RWX.
• Market Risk: RWX is subject to the risks associated with its underlying assets, such as changes in interest rates, economic conditions, and property values.

Who Should Consider Investing:

RWX is suitable for investors who are looking for:

• Exposure to the global real estate market outside of the United States.
• A diversified portfolio of REITs.
• A low-cost and liquid investment option.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, RWX receives a fundamental rating of 8 out of 10. The ETF has a strong track record of performance, a low expense ratio, and a diversified portfolio of assets. However, it is important to note that the global real estate market can be volatile, and the ETF is subject to certain risks.

Resources and Disclaimers:

• SSGA ETF website: https://www.ssga.com/us/en/individual/etfs/etf-detail?ticker=RWX
• Morningstar: https://www.morningstar.com/etfs/arcx/RWX/quote

Disclaimer: The information provided in this summary is for general knowledge and informational purposes only, and does not constitute professional financial advice. It is essential to conduct your own research and consult with a qualified financial advisor before making any investment decisions.