Real Estate Fund: Claymore Global Real Estate ETF (CGR): Review Analysis and Details

The benefits of ETF's or Exchange Traded Funds are known to many, and if you can find a good ETF on Real Estate Sector, then without actually putting a big amount of your money in buying properties, you can benefit from the rise in the property or Real Estate Sector by making an Investment in Real Estate ETF. In this article, we will focus on some of the Real Estate Exchange Traded Funds.

What is the Claymore Global Real Estate ETF?
Claymore Global Real Estate ETF is a kind of Exchange Traded fund which focuses on the Real Estate Sector. This fund is aiming to replicate the performance of the underlying Real Estate Index called the Cohen & Steers Global Realty Majors Index. The investment by the Claymore Global Real Estate ETF Fund will be to invest the investors money into Constituent Securities of the Index. Good thing is that this fund will hold the securities in the same ratio like the underlying fund, so except for the brokerage charged and other expenses, the investors can expect this fund to track the underlying real estate index with low tracking error. However, the prospectus also mentions that the fund manager may also invest in derivative instruments to obtain exposure to the performance of the Index

What is the underlying index for Claymore Global Real Estate ETF?
The Claymore Global Real Estate ETF will track the underlying index called the Cohen & Steers Global Realty Majors Index.
The Global Realty Majors Portfolio Index is a free-float, market-cap-weighted total return index of selected real estate equity securities. Typically it holds around 75 securities. It is quoted intraday on a real-time basis by the CME or Chicago Mercantile Exchange and uses the symbol GRM. The index’s modified market capitalization approach and qualitative screening process emphasize companies that the Cohen & Steers Index Committee believes are leading the securitization of real estate globally.

Fund Data for Claymore Global Real Estate ETF:
Ticker Symbols TSX: CGR
Advisor Class Units TSX: CGR.A
Initial Unit Price $20.00
Income Distribution Foreign Income
Distribution Frequency Quarterly
CUSIP Symbols 18384J114
Advisor Class Units 18384J106
Management Fee 0.65%

Recent performance of Real Estate Funds Index:

What are the benefits of investing in a Real Estate ETF?
There are many benefits of investing in a Real Estate ETF like the Claymore Global Real Estate ETF:

- You can get exposure to real estate sector with limited capital without actually buying properties worth millions
- You can stay in Alaska, but can benefit from the price rise in New York property if you buy a Real Estate Fund which has good exposure to New York properties
- You can also opt for a global fund like Claymore Global Real Estate ETF, and benefit from overseas property market exposure.
- You don't have to get into the hassles of taking a loan from benefiting from Real Estate sector. You can bet with small amount of money also.

Is this the right time to invest in a Property or Real Estate Fund?
Experts say yes. Some are of the opinion that the worst is already over and we can see an uptrend from here. Hence this looks like the correct time for investing in the property market. And the best way to do it is through Real Estate Sector Funds or ETF or Property Funds