FTSE EPRA/NAREIT real estate indices surpass $10Bn in ETF-linked AUM

17 May 2013

  • Leading global real estate indices hit landmark AuM
  • Continuous innovation to the index series
  • Successful 8 year partnership between FTSE and EPRA/NAREIT

FTSE Group (“FTSE”), the global index provider, is pleased to announce that the ETF assets linked to the FTSE EPRA/NAREIT Global Real Estate Index Series, reached $US10.5 billion in assets under management, as of 30 April 2013. In total, more than US$176 billion of ETF assets are currently benchmarked to FTSE indices worldwide.

Launched in 2005, the index has expanded from the original Developed index to include a wide range of indices covering developed and emerging markets, Dividend+ and sector indices. In May 2013 FTSE launched the latest in the Series – the FTSE EPRA/NAREIT Developed Super Liquid Index. Constituents are chosen from the most highly liquid constituents of the FTSE EPRA/NAREIT Developed index, while retaining the characteristics of the underlying index. All FTSE’s Super Liquid indices are easier to replicate than their underlying indices.

FTSE collaborates with EPRA and NAREIT, the leading REIT trade associations in Europe and North America. Constituents are liquidity screened and the indices are calculated using actual free float to enhance transparency and investability. ETFs benchmarked against the index series are listed by six issuers on seven exchanges across Europe and North America.

Jonathan Horton, President of FTSE Americas and Head of FTSE’s ETP Service Unit said: This is an important milestone which underlines both FTSE’s position as the pre-eminent provider of global real estate benchmarks and as the preferred index provider for ETF issuers seeking to create new opportunities in real estate investment. We look forward to building on this success with our partners at EPRA and NAREIT to create innovative new tradable real estate indices which expand investor choice.”

“This significant development underscores the fact that liquid and diversified real estate investment is now available to investors worldwide through a growing number of financial products, due in part to the successful partnership undertaken by NAREIT and EPRA with FTSE,” said Steven A. Wechsler, NAREIT President and CEO.

Fraser Hughes, Director of Research, Indices & Investor Outreach at EPRA said: “The interest in accessing real estate does not surprise us. Investors’ thirst for yield, coupled with longer-term performance make EPRA/NAREIT ETFs a proxy for direct real estate investment. The EPRA/NAREIT selection process ensures only quality buildings managed by top quality executive teams are included.”

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