Can someone help clarify how a real estate ETF works?
Given that real estate is tangible, whereas ETFs traditionally track intangible assets (stocks), how are real estate ETF valued if they are tangible goods? This feel like a dumb question.
In: Economics
Like a standard ETF real estate ETFs hold shares of companies that own the real estate, not the real estate itself. The ETF value is derived from the underlying shares’ prices. A real estate company can own a building and it be part of the asset value much like how Apple can own a building, really no difference there.
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