REIT index composition index question

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REIT index composition index question

Post by Kelly » Thu Jan 26, 2017 10:35 am

Does anyone know what the differences are between the Dow Jones US Real Estate Index (iShare IYR) and MSCI US REIT Index (Vanguard VGSLX). Looking at historical returns in M* I see a large differences. I would think that two indexes tracking the same sectors would be close after cost. In 2014 VGSLX did 3.7% better. Why?

Many thanks for any insight!


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Re: REIT index composition index question

Post by Pajamas » Thu Jan 26, 2017 5:26 pm

They track two different indexes with different compositions as you can see just from the top ten holdings. Here are the fact sheets in pdf: ... f749bb459b

(U.S. equity REITs only) ... _Sheet.pdf

(U.S. REITs and other companies that invest directly or indirectly in real estate through development, management or ownership, including property agencies.)

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Re: REIT index composition index question

Post by Northern Flicker » Fri Jan 27, 2017 12:00 am

The MSCI index excludes mortgage REITs, which essentially are leveraged fixed-income portfolios.
Taking a break from Bogleheads.

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