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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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Ramón A. Rivera-Ramos
Blue Vault Nontraded REIT and Nontraded BDC Reviews
September 1, 2016

Blue Vault helps me to stay well informed on the financial status of both open and closed nontraded REITs and BDCs, so that I can help my clients better understand the product, before they make the decision to invest and after.