Mutual funds investing the real estate sector should be a necessary addition to portfolios with a long term horizon even though the sector has traversed rough waters in the recent past. Real estate mutual funds have delivered significantly high returns in the past and offer a convenient method for investing in this sector. With their low initial investment requirements, well diversified portfolios and professional management they can go a long way in lowering the risk involved. They also bring stability and steady returns to portfolios over the long term.
Below we will share with you the 5 best performing real estate mutual funds year to date. To view the Zacks Rank and past performance of all real estate funds, investors can click here to see the complete list of funds .
Total Return YTD
ProFunds Real Estate UltraSector
Cohen & Steers Realty Income A
Forward Real Estate Long/Short A
#1 Strong Buy
Stratton Real Estate
Forward Real Estate
ProFunds Real Estate UltraSectorA (REPSX) invests in securities and derivatives which together should provide daily returns identical to 1.5 times that of the Dow Jones U.S. Real Estate Index. The index tracks the performance of real estate companies listed on domestic equity markets. The growth mutual fund returned 22.07% over the last one year period.
Hratch Najarian the Fund Manager and he has been managing this real estate mutual fund since 2011.
Cohen & Steers Realty Income A (CSEIX) invests in securities issued by those companies which are related to real estate. A maximum of 20% of assets is also invested in debt issued or backed by real estate firms. The growth mutual fund returned 17.07% over the last one year period.
The real estate mutual fund has an expense ratio of 1.25% compared to a category average of 1.35%.
Forward Real Estate Long/Short A (KSRAX) seeks total return and capital growth on a long term basis. The fund invests the majority of its assets in securities of those companies which are involved in real estate industry. Investments are made in domestic and foreign companies inclusive of those from emerging nations. The growth mutual fund returned 20.38% over the last one year period.
As of December 2012, this real-estate mutual fund held 117 issues, with 4.59% of its total assets invested in Simon Property Group Inc.
Stratton Real Estate (STMDX) invests a large share of its assets in real estate firms and related companies. A minimum of 25% of its assets are invested in REITs. The fund may purchase equity securities issued by companies regardless of their size. It also invests in debt securities without regard to their maturity periods. The growth mutual fund returned 18.02% over the last one year period.
Andrew T. DiZio is the Fund Manager and he has been managing this real estate mutual fund since 2012.
Forward Real Estate (FFREX) seeks a capital growth along with income. The fund invests the majority of its assets in securities of companies which are related directly to the real estate sector. The growth mutual fund returned 17.42% over the last one year period.
The real estate mutual fund has an expense ratio of 1.67% compared to a category average of 1.35%.
To view the Zacks Rank and past performance of all real estate mutual funds, investors can click here to see the complete list of funds .
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.