Real Estate has always been a key player in building wealth, however access to owning real estate is not always easy. Large capital requirements, liquidity- and interest rate risk, are the realities we face when deciding to invest in this much loved asset class. But what if there were a way you could invest in real estate without the barriers that come with buying, managing, and financing it? 

This is where Real Estate Investment Trusts (REITs) and REIT Exchange-Traded Funds (ETFs) come in. These are accessible, diverse, and income-generating vehicles to easily access and participate in the global real estate market.

What Are REITs?

Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-generating real estate. From shopping malls to hospitals, from data centres to student housing, REITs encompass a range of diverse property types.

One key feature of REITs is their commitment to income generation. They are legally required to distribute at least 75% (in most cases 90%) of their taxable income as dividends to their shareholders. This makes them particularly attractive to investors seeking regular income.

What Are REIT ETFs?

A REIT ETF is a fund that invests in a basket of REITs, giving investors exposure to a diversified portfolio of real estate assets through a single investment, listed on a stock exchange. This basket is a way to own a piece of everything the global real estate universe has available in a cost-effective, and very accessible way.

• Diversification: Instead of depending on one property, one property sector or one REIT, you gain exposure to multiple REITs across sectors and regions, spreading your risk.
• Liquidity: Perhaps the most attractive characteristic is that, unlike direct property investments, REIT ETFs are traded on stock exchanges. The implication - you can buy or sell them the minute you make the decision to.

Why Are REIT ETFs Important?

They offer a way to tap into the lucrative real estate market without the barriers of high capital requirements or property management headaches. With REIT ETFs, anyone can start small, grow their investment, and earn income along the way.

An Exciting Opportunity for South African Investors

In the ever-evolving world of investments, a Cape Town-based boutique investment company, Reitway Global, is revolutionizing how South Africans invest in global property. With over a decade of expertise in global REITs, Reitway Global has launched innovative REIT ETFs that cater to both seasoned investors and those just beginning their financial journeys.

Breaking Down REIT ETFs

1. High Growth Sectors: These ETFs strategically target sectors like cutting-edge healthcare facilities, senior living developments, and lifestyle properties—areas driven by global trends such as aging populations and technological advancements.
2. Accessibility: With a minimum investment equivalent to just one share, anyone can participate in this asset class.
3. Transparency and Flexibility: Traded on platforms like ETFSA and Easy Equities, these ETFs empower investors to monitor and manage their investments seamlessly.

Why Choose Reitway Global's REIT ETFs?

A Blend of Passive and Active Expertise

• Passive: By tracking customized indices, the ETFs provide cost-effective exposure to the global real estate market.
• Active: Their actively managed option adapts to market conditions, capitalizing on both short-term opportunities and long-term growth trends.

Innovative Partnerships: The ETFs are built on unique indices co-developed with global leaders in index calculation and maintenance, ensuring precision and reliability.

Income and Growth: While Reitway Global's existing ETFs focus on total return, they have developed a new income-focused index, that aims to deliver higher immediate yield alongside potential long-term growth. The ETF tracking this index is projected to be listed on the JSE in early 2025.

Meeting Global Trends

As the world evolves, so does real estate. REIT ETFs by Reitway Global are aligned with global trends such as:

• Cold Storage: Essential for the booming e-commerce and food delivery industries.
• Data Centers: Expanding to meet the surging demands of AI and the tech economy.
• Single-Family Rentals and Housing Conversions: Addressing the needs of longevity-focused generations and urban transformation.

How to Get Started

Whether you’re a Gen Z looking to secure your financial future, a millennial seeking passive income, or a retiree focusing on stability, Reitway Global’s REIT ETFs offer something for everyone. Accessible, transparent, and designed for growth, these ETFs provide a powerful tool to diversify your portfolio and tap into the global real estate market.

By embracing REIT ETFs, South African investors have the chance to participate in a resilient and evolving asset class. With Reitway Global's expertise and innovative approach, the opportunities in global real estate are now within reach of all ages and investment goals.

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