Even though real estate has been through tough times recently, securities from this sector should continue to be an integral part of portfolios with a long term horizon. Over the years, mutual funds from this category have continued to perform favorably. They offer a convenient method to invest in real estate because of low initial investment requirements and the advantage of professional management. Investors willing to hold long term positions would do well to consider these funds as they add stability and bring steady returns to a portfolio.
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, then click here.
American Century Real Estate (REACX) seeks current income and capital growth. The fund invests a large proportion of its assets in real estate investment trusts and companies from the sector. The fund focuses on acquiring common and preferred stock and related convertible securities. The real estate mutual fund returned 15.27% over the last one year period.
Steven R. Brown is the Fund Manager and he has been managing this real estate mutual fund since 2008.
GMO Real Estate III (GMORX) invests the majority of its assets in real estate investment trusts and related investments. The fund seeks to provide returns in excess of its benchmark, the MSCI U.S. REIT Index. The real-estate mutual fund is non-diversified and has a three year annualized return of 15.52%.
The real estate mutual fund has an expense ratio of 0.48% compared to a category average of 1.45%.
Delaware Real Estate Investment Trust II (DPRTX) seeks total return with a secondary objective of capital growth. A large proportion of the fund’s assets are used to purchase equity securities issued by real estate investment trusts and companies. The real estate mutual fund returned 12.37% over the last one year period.
Babak J. Zenouzi is the Fund Manager and he has been managing this real estate mutual fund since 2006.
Delaware REIT A (DPREX) invests at least 80% of its assets in real estate investment trusts. The fund also invests a substantial portion of its assets in securities issued by firms from the real estate sector. The real-estate mutual fund has a ten year annualized return of 9.97%.
As of September 2011, this real estate mutual fund held 51 issues, with 11.6% of its total assets invested in Simon Property Group, Inc.
Virtus Real Estate Securities A (PHRAX) seeks both income and capital growth. The fund invests heavily in real estate investment trusts which are publicly traded. The fund’s other major investments include companies whose principal operations are related to the real estate sector. The real estate mutual fund returned 11.96% over the last one year period.
The real estate mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.48% compared to a category average of 1.45%.
To view the Zacks Rank and past performance of all real estate mutual funds, then click here.
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.
