Author Topic: New REIT Index Launched - VNQ effect?  (Read 1216 times)

Zman

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New REIT Index Launched - VNQ effect?
« on: June 23, 2015, 09:09:55 AM »
Can somebody please explain this to me?
http://seekingalpha.com/news/2595445-new-reit-index-launched
I am new to this all and wanted to try to know what it means for VNQ and in general. Will it affect prices? dividends? tax status/classification?

All information is welcomed!

hodedofome

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Re: New REIT Index Launched - VNQ effect?
« Reply #1 on: June 23, 2015, 09:29:13 AM »
Nothing here is changing VNQ, this is just somebody making another index out there. The index that VNQ is based on (MSCI US REIT index) is not changing.

Someone is making an equal weight REIT index from only the REIT stocks in the S&P 500, and there will be another sector for REITS added to the major sector list (tech, healthcare, financials, consumer discretionary, etc). Before REITs were in the financial sector funds, and apparently they are going to separate the two. The dividend for the financial sector will drop because of this, that's what the article is referring to.

forummm

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Re: New REIT Index Launched - VNQ effect?
« Reply #2 on: June 23, 2015, 09:38:00 AM »
I don't think it will have much impact on any of those items you mention. People make new funds all the time. When someone is buying a stock, someone else is selling it. New funds are just new vehicles for people to buy assets.

Equal weighting is getting trendy, and this fund is trying to capitalize on that trend.

Zman

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Re: New REIT Index Launched - VNQ effect?
« Reply #3 on: June 23, 2015, 09:43:29 AM »
Ahhhh I see, Thanks guys!