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VanEck Blog & Insights

VanEck Vectors FTSE International Property (Hedged) ETF REIT

Fund description: REIT gives investors access to a diversified portfolio of international property securities from developed markets (ex Australia) with returns hedged into Australian dollars. REIT aims to provide investment returns before fees and other costs which track the performance of the Index.

Index description: The FTSE EPRA Nareit Developed ex Australia Rental Index AUD Hedged consists of securities that are real estate investment trusts (REITs) and companies listed on the exchanges of the world's major developed economies (ex Australia) that own real estate assets and derive >70% of their EBITDA from rental income.

Management style:  Replication

 as at 17-Apr-19

  • Exchange

    ASX
  • ASX code

    REIT
  • Bloomberg index code

    TRAHRA
  • Index provider

    FTSE
  • NAV1

    $19.43
  • Units outstanding1

    120,000
  • Net assets1

    $2.3M
  • Number of holdings1

    302
  • Inception date2

    29-Mar-19
  • ASX commencement

    02-Apr-19
1As of the close of the previous trading day.
2The date the ETF was seeded prior to quotation on ASX.

as at 17-Apr-19

*The NAV is generally calculated daily after all markets are closed for that day based on the closing price of the securities on the relevant foreign stock exchange. The NAV is then converted to AUD based on the relevant London WM Reuters 4pm exchange rate. This means, due to Australia’s time zone, that the NAV will generally not be updated until around 3pm next business day. 

 

Key points

Underlying Index
FTSE EPRA Nareit Developed ex Australia Rental Index AUD Hedged

Overview
The securities in the Index are real estate investment trusts (REITs) and companies that own real estate assets that derive a significant portion of their EBITDA from rental income and are listed on exchanges in the world’s major developed economies (ex Australia).

Summary of Index methodology
Below is a general overview of the process FTSE follows to determine the constituents of the REIT Index:

1. The eligible universe of securities is the FTSE Global All Cap Universe.

2. FTSE screens the eligible universe to include only companies in ICB Supersector Real Estate, ICB Subsector Heavy construction, or ICB Subsector Home Construction. Additional companies may be included with guidance from European Public Real Estate Association (EPRA), National Association of Real Estate Investment Trusts (NAREIT) and FTSE's Regional Advisory Committee consisting of senior market practitioners who are representative of the appropriate sectors of the real estate investment community.

3. Only companies which derived in the previous full financial year at least 75% of total EBITDA from ownership, trading and development of income-producing real estate are included;

4. A company must be classified as Rental to be included in the REIT Index. To be classified as Rental the EBITDA or revenue from properties must be greater than or equal to 70% of the total EBITDA or revenue both years individually of a two year period.

5. Size thresholds for both new and continued membership are applied at each quarterly review (based on a percentage of their respective region's investable market cap).

6. A liquidity screen is conducted semi-annually in March and September based on each security's monthly median daily trading.

Currency hedging
FTSE reduces the exposure of the Index to foreign exchange rate fluctuations between the Australian dollar and currencies in which the constituents are denominated by notionally entering into forward foreign exchange contracts on a rolling one-month basis at the end of each month. The Index is not fully hedged and retains some exposure to currency movements.

Rebalances
The Index is reviewed and re-balanced on a quarterly basis, usually as of the close of the third Friday of March, June, September and December. The Index constituents will be compiled using data available after the close of business on the Monday 4 weeks prior to the re-balancing effective date.

Index provider:
FTSE International Limited (FTSE), a member of the London Stock Exchange. FTSE is not a related body corporate of VanEck Investments Limited.

The Fund is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited or the London Stock Exchange Group companies (‘LSEG’) (together the ‘Licensor Parties’) and none of the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the FTSE EPRA Nareit Developed ex Australia Rental Index AUD Hedged (‘Index’) upon which the Fund is based, (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the Fund. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to VanEck or to its clients. The Index is calculated by FTSE or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any obligation to advise any person of any error therein. All rights in the Index vest in FTSE. “FTSE®” is a trademark of LSEG and is used by FTSE and VanEck under license.

Index profile  

  • Bloomberg index code

    TRAHRA
  • Base date

    26-Mar-07
  • Rebalance Frequency

    Quarterly

Top ten index constituents (%) Download all daily index constituents as at 18-Apr-19

Total constituents: 304
Constituent name
Ticker
Weightings (%)
SIMON PROPERTY GROUP INC
SPG US
4.21
PROLOGIS INC
PLD US
3.48
PUBLIC STORAGE
PSA US
2.48
WELLTOWER INC
WELL US
2.07
AVALONBAY COMMUNITIES INC
AVB US
2.06
EQUITY RESIDENTIAL
EQR US
2.05
VONOVIA SE
VNA GR
1.97
DIGITAL REALTY TRUST INC
DLR US
1.89
LINK REIT
823 HK
1.88
UNIBAIL-RODAMCO-WESTFIELD
URW NA
1.82
Top ten total (%) 23.91
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index country weightings (%) as of 18-Apr-19

  • Country

    Weightings (%)
  • UNITED STATES

    62.4
  • JAPAN

    9.3
  • UNITED KINGDOM

    5.2
  • GERMANY

    4.9
  • HONG KONG

    3.4
  • CANADA

    3.3
  • NETHERLANDS

    2.1
  • SINGAPORE

    2.1
  • SWEDEN

    2.0
  • FRANCE

    1.8
  • BELGIUM

    1.0
  • SPAIN

    0.6
  • SWITZERLAND

    0.5
  • IRELAND

    0.2
  • AUSTRIA

    0.2
  • ISRAEL

    0.2
  • GUERNSEY

    0.2
  • FINLAND

    0.1
  • NORWAY

    0.1
  • NEW ZEALAND

    0.1
  • ITALY

    0.0
  • Total

    99.7

Index sector weightings (%) as at 18-Apr-19

  • Sector

    Weightings (%)
  • Equity Real Estate Investment

    87.9
  • Real Estate Management & Development

    11.5
  • Real Estate Investment Trusts (REITs)

    0.3
  • Health Care Providers & Services

    0.2
  • Hotels, Restaurants & Leisure

    0.1
  • Total

    100.0

Source: FTSE® is a trademark of the London Stock Exchange Group companies and is used by FTSE under licence. All rights in the FTSE indices vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.