PowerShares REIT ETF occupies middle ground among rivals

Strategy emphasizes consistency in income distributions.

Rudy Luukko 12 September, 2017 | 5:00PM
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With today's launch of PowerShares S&P/TSX REIT Income Index (symbol: REIT), investors can now choose from among five exchange-traded funds that specialize in Canadian real estate investment trusts. Sponsored by Invesco Canada Ltd., the PowerShares ETF seeks to outperform the broad REITs market by screening for superior distribution records.

That places the ETF, as is characteristic of most PowerShares offerings, in the strategic-beta camp. It joins two established rivals that are based on market-cap-weighted REITs indexes, along with one equal-weighted index strategy and one that is fully actively managed.

The index that the PowerShares ETF is based on holds the same 15 securities as that of the oldest and largest ETF in the Real Estate Equity category, the $1.3-billion  iShares S&P/TSX Capped REIT Index XRE.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
CI Canadian REIT ETF20.59 CAD-0.29

About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to Morningstar.ca on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.

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