The Benchmark Healthcare Real Estate SCTR℠ Index measures the performance of publicly-traded real estate securities, primarily Real Estate Investment Trusts (REITs), of exchange listed companies in the U.S., that primarily own and manage various forms of healthcare related real estate and rent space in those properties to tenants. The healthcare securities include real estate investment trusts that specialize in different properties and markets such as medical office buildings, hospitals, senior living facilities, and skilled nursing facilities.
RXRE resides at the intersection of two large and dynamic markets: healthcare and real state where each represents nearly 20% of U.S. GDP
Demand tailwind of large growing senior population and longevity megatrend as almost 20% of U.S. residents are expected to be 65 or older in 2030 (U.S. Census Bureau)
Long-term tenants such as hospitals and medical office buildings provide generally stable, bond-like income payments, resulting in a defensive investment profile.
|NUMBER OF HOLDINGS:||20|
|WEIGHTING:||MODIFIED MARKET CAP|
TOP 10 HOLDINGS
Top 10 Holdings
As of 11-13-2018
Benchmark Real Estate SCTR℠ proprietary holdings and performance history are provided upon request. SCTR℠ indices are protected through various intellectual property rights and unfair competition and misappropriation laws. In particular, Benchmark Investments has registered the “SCTR” “RXRE” and “SCTRs” service marks. Benchmark requires a license to launch any product whose performance is linked to the value of a particular SCTR℠ index, for example, derivatives, bonds, swaps and OTC products and for all use of the SCTR℠ name or name of the SCTR℠ index in the marketing of the product. See the Terms of Service for more information.
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|Benchmark Healthcare Real Estate SCTR℠ Index||RXRESCTR||Total Return||NASDAQ|
RXRE Returns: Not All Real Estate is Created Equal
RXRE℠ Returns vs. Benchmark SCTRs℠ and FTSE Nareit Indexes demonstrate how each property type has its own set of investment characteristics, including individual economic cycles and risk factors, competition threats, and growth potential. Real Estate SCTRs℠ provide tailored solutions for commercial real estate investment management. There is significant dispersion of market multiples (Share Prices/Fund From Operations) and returns throughout the property sectors. SCTRs℠ give market participants direct access to the property class they desire.
Benchmark RXRE 1YR Percentage Returns
Benchmark RXRE 3YR Percentage Returns
Advantages of Real Estate SCTRs
Correlation and risk-adjusted return metrics demonstrate that listed equity real estate investment trusts provide optimal exposure to the real estate asset class.
Allows investors to take or adjust positions quickly and efficiently by buying and selling positions corresponding to the weights of all constituents which are traded on liquid public markets such as NYSE & Nasdaq.
Provides direct access to institutional office real estate diversified over many geographic areas and management teams without investing in properties or with a real estate equity managers
Portfolio Investment Thesis
Real Estate SCTRs℠ provide tailored solutions for commercial real estate investment management. Main drivers for each real estate SCTR℠:
- Market “cap rates”
- Supply/ demand conditions
- Competition from nearby properties
- Employment growth
- Consumer and business spending
- Interest rates
- Lease revenues
- Property expenses
- Occupancy rates
- Prevailing market rental rates
- Tenant quality and replacement cost