XLRE Profile
The Real Estate Select Sector SPDR Fund is designed to provide investment results that correspond to the performance of the Real Estate Select Sector Index. This index includes companies primarily engaged in real estate management and development, as well as real estate investment trusts (REITs), with the exception of mortgage REITs. The fund aims to offer investors targeted exposure to the real estate sector of the U.S. equity market, focusing on a broad spectrum of real estate-related industries.
In practice, the fund allocates a substantial portion of its assetsâ€at least 95%â€to the securities that make up the index. This investment strategy ensures that the fund closely mirrors the performance of the underlying index, which captures a diverse range of real estate activities and entities. By concentrating its investments in this index, the fund provides investors with a focused approach to gain exposure to the real estate sector, minus the mortgage REIT segment.
The Real Estate Select Sector SPDR Fund is non-diversified, meaning it concentrates its investments in the real estate sector rather than spreading them across various sectors of the economy. This concentrated investment approach allows the fund to provide specialized exposure to real estate companies, including those involved in property management, development, and rental operations, which are integral to the real estate market's performance.
Investors in this fund can benefit from a strategic allocation to the real estate sector, leveraging the potential growth and income opportunities within the industry. The fund's focus on real estate management and development, alongside REITs (excluding mortgage REITs), reflects its commitment to capturing the dynamics and trends within the real estate sector, offering a tailored investment option for those seeking to capitalize on real estate market movements.
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