OREAX: Oppenheimer Real Estate Fund IYR: iShares US Real Estate ETF Presented by: Pauline Yang, Jerry Zhang, Rohan Bhatia, James Luo, Joakim Jiang
2 OREAX: Oppenheimer Real Estate Fund Key Features Objectives - Open-ended fund KEY DATA - The fund’s objective corporated in USA - Net Expense Ratio: 1.33% is total return - Non-diversified - Total Net Assets: through investment - It primarily invests in $388.5Million real estate in real estate - Returns: investment trusts securities. - Past year: 1.42% ("REITs") but may - Past 3 years: 0.91% - Invests 80% of its net also invest in real - Past 5 years: 7.38% assets in common estate operating - Past Decade: 6.56% stocks and other companies ("REOCs") equity securities and other real estate issued by real estate. related securities.
3 OREAX: KEY HOLDINGS Name Symbol Weight Capital Prologis Inc PLD 7.86% 29.48B Digital Realty Trust Inc DLR 7.25% 21.04B Simon Property Group Inc SPG 5.76% 32.36B Equinix Inc EQIX 5.29% 18.69B Boston Properties Inc BXP 4.21% 19.37B UDR Inc UDR 4.13% 7.73B Essex Property Trust Inc ESS 4.03% 12.50B Welltower Inc WELL 3.86% 1.952T Regency Centers Corp REG 3.54% 4.488B First Industrial Realty Inc FR 3.52% 2.941B
4 IYR: iShares US Real Estate ETF Key Facts Investment Strategies - Size: $3.44 billion - “Passive” or indexing approach - Number of holdings: 124 - Reduce the risk of active - Objective: track the investment management results of an index composed of - Keep portfolio turnover low U.S. equities in the real estate - Representative sampling indexing sector strategies - Expense Ratio: 0.44% - Invests most of its assets in securities of the Underlying Index and in depositary receipts
5 IYR: Top 10 Holdings Name Symbol Weight Capital American Tower Corporation AMT 6.40% 33.21B Simon Property Group, Inc. SPG 4.89% 31.30B Crown Castle International Corp CCI 4.55% 32.23B Prologis, Inc PLDGP 3.40% 29.48B Equinix Inc EQIX 3.33% 18.69B Public Storage PSA 3.03% 10.73B Weyerhaeuser Company WY 2.72% 18.06B AvalonBay Communities, Inc AVB 2.30% 18.41B Equity Residential EQR 2.25% 20.57B Digital Realty Trust, Inc DLR 2.16% 21.49B
COMMENTS ON TOTAL RETURN 6
COMMENTS ON TOTAL RETURN 7
8 Price Movement - Exchange Rate Currency exchange rate Canadian Dollar Sinks ● Causing OREAX&IYR ● in $CAD sharper returns than in $US after March 12th
9 Price Movement - Biggest Plunges ● -2.98% for mutual fund and -3.22% for ETF ● US stock market falling - Bitcoin Effect - Dow Jones Industrial Average fell more than 1800 points - Caused by the fear of rising interest rates Feb 5th
10 Price Movement - Trump’s China Tariff Push ● At the end of our tracing ● Global decline ● S&P/TSX composite index fell 1.76% ● Hypothesis: long term effect March 22th
11 Risk Measurements Mutual ETF S&P 500 OREAX IYR Fund (IYR) (OREAX) 3-YEAR S.D 13.35% 12.7% Annualized 17.51% 18.29% 20.63% 5-YEAR S.D 14.07% 13.13% Standard Deviation (US$) 3-YEAR -0.53% 0.19% Annualized 17.64% 18.09% 20.63% Annual Standard Deviation Return (C$) Mutual Fund ETF Mutual ETF (US$) (US$) Fund (C$) (C$) Beta 0.334 0.736 0.242 0.607
12 Correlation There is a moderate positive correlation between IYR and OREAX of 0.667(In US$) and of 0.663(In C$) Both of these are in the Real Estate Industry
Correlation Daily % Return Comparison of OREAX and IYR.
14 Recommendation --- ETF(IYR) - Higher total return - Less Volatility/ Lower level of risks in a long term - Less Expense Ratio - Higher Liquidity - A stably increasing market price - Invests more Large-capital companies
Thank You For Listening Questions?
References 16 - OREAX?P=OREAX Risk | Oppenheimer Real Estate Fund Cl Stock. (2018, March 27). Retrieved March 27, 2018, from https://finance.yahoo.com/quote/OREAX?P=OREAX/risk/ - OREAX Historical Prices | Oppenheimer Real Estate Fund Cl Stock. (2018, March 27). Retrieved March 27, 2018, from https://ca.finance.yahoo.com/quote/OREAX/history?p=OREAX - Dow tumbles more than 700 points after Trump's China tariff push | CBC News. (n.d.). Retrieved March 27, 2018, from http://www.cbc.ca/news/business/dollar-stocks-market-1.4587888 - Fidelity. (n.d.). Performance & Risk: IYR. Retrieved March 27, 2018, from https://screener.fidelity.com/ftgw/etf/goto/snapshot/performance.jhtml?symbols=IYR - I. (2015, April 14). What are some common measures of risk used in risk management? Retrieved March 27, 2018, from https://www.investopedia.com/ask/answers/041415/what-are-some-common-measures-risk -used-risk-management.asp - Nath, T. (2018, February 06). How Investment Risk Is Quantified. Retrieved March 27, 2018, from https://www.investopedia.com/articles/investing/032415/how-investment-risk-quantified.as p -
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