The ETF Investor - Episode 26 - Custom Indices in Listed Real Estate
By Nerina Visser, CFA
Listed real estate investments have been under quite a bit of pressure over the last year or two, and the global lockdown due to Covid pandemic just added insult to injury. Even global real estate stocks, although arguably more diversified than local investments, were weighed down by the strength in the rand which has appreciated more than 20% against the US dollar over the past year. But not all real estate indices are created equally, and in this industry, forced to adapt very quickly, there is a case to be made for indices that are also more responsive to change. What are custom indices and how do they work?