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Reclassification May Boost REITs, Shake Up Financial ETFs

July 1, 2016

 

 


Reclassification May Boost REITs, Shake Up Financial ETFs

JUNE 30, 2016 |

Real estate equities are finally getting their own investment classification, but the benefits of their change might not be apparent until years after their reclassification while the impact on financial sector ETFs could be immediate.

At the end of August, S&P Dow Jones and MSCI will give REITs and other real estate companies their own sector under the Global Industry Classification Standard (GICS), which categories equities by economic sector.

“I expect the reclassification will have a major impact, but I don’t expect it to happen overnight,” says Michael Grupe, executive vice president of research and investor outreach for NAREIT. “As people work with their advisors, as they accumulate more savings in investments and start thinking more about how their assets are allocated, it’s going to be a plus.”

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John E. Moriarty, ChFC
December 2015
February 3, 2016

I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture.  For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments.  Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients.  I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.