- Thanks to a combination of the indexing craze and REITs now occupying their own indexable category, there's a decent chance Vanguard is the largest single shareholder of your favorite real estate-focused company.
- Vanguard is an owner of 18% of Host Hotels (NYSE:HST), 15% of Simon Property (NYSE:SPG), 16% of Brandywine Realty (NYSE:BDN), and roughly 15% of Prologis (NYSE:PLD), to name a few.
- For perspective, Vanguard owns less than 7% of most of the S&P 500 constituents.
- Combine Vanguard with BlackRock, and the two own about 30% of the REIT industry.
- While "uneducated buyers" of index funds are unwittingly boosting REIT share prices, the underlying value may be slipping, suggests Stifel's John Guinee. He says specialized real estate investors are pulling back.
- ETFs: VNQ, IYR, RQI, SCHH, DRN, RNP, RFI, URE, KBWY, ICF, RWR, NRO, SRS, JRS, XLRE, DRA, DRV, FREL, RIF, RIT, LRET, REK, FRI, FTY, PSR, WREI, USRT, IARAX, RORE
- Now read: Here's Lots Of Sun And NOI Growth
Original article