You may have wished at some stage that you owned a large office building, a luxury hotel, or an oil pipeline. Most people know that these expensive asses can generate a very good profit. By investing in U.S. Real Estate ETFs on Olymp Trade, traders are able to share in that profitability, but with less capital and risk.
It is possible to invest in the most profitable U.S. real estate projects and hotels without having to start your own management or construction business and without needing to first obtain a massive amount of money as startup capital. As property assets historically increase in value, interest in investments in real estate is growing globally.
Although the companies that operate these properties often produce profits consistently, investing into a single venture can be risky, the same as investing in the stock of any other company. That is the reason why REITs (Real Estate Investment Trusts) were created. These function very similar to mutual funds and diversify risk by investing in clusters of companies centered on real estate. The creation of REITs eventually resulted in Real Estate ETFs being created. With these, the stocks of a number of company centered on real estate and REITs can be bought together.
The funds’ shareholders are paid dividends proportional to the size of the investment they hold. Overall, this is a very good investment option when bond and stock portfolios need to be balanced, and it also serves as a hedge against various types of market fluctuation.
Imagine that you could purchase shares in projects such as Mecca’s Pullman ZamZam luxury hotel, Burj Kalifa tower, and the Saudi Real Estate Development Fund, and take a share of the profit from these projects and the firms that manage them.
Your investment could also be diversified further into other property types such as big housing developments, apartment complexes, and oil/gas pipelines, so that you do not totally rely on any one specific industry centered on real estate.
That is how the U.S. Real Estate ETF works. Traders invest in the market comprised of clusters of companies centered on real estate that operate from the United States. Olymp Trade’s platform allows its clients to use the Fixed Time and Forex options to make a profit from negative and positive movements in this sector.
The U.S. Real Estate ETF is affected by several macro-economic factors. As most real estate projects use financing from banks, one of the most important things to watch is interest rates. Lower interest rates will significantly improve the capacity to finance starting of new big projects, renovating current projects, and upgrading the infrastructure that supports them.
The market can be adversely affected by data on taxes, substantial infrastructure projects such as power stations and pipelines, and construction of new housing. Tourism also has an effect on this market as the hotel trade will benefit from more travel, and this also affects consumer confidence.
The U.S. Real Estate ETF has experienced significant gains since April 2019, with the lowest level of 84 reached in April 2019 and the price currently being in the region of 96. This is an increase of 14%. Most of the movement was as a result of improved consumer confidence driving sales of new homes, a strong economy in the U.S., real estate banks providing low interest rates and tax reductions brought in by the Trump administration.
Olymp Trade clients have many great opportunities to profit due to them being able to invest in the ETF from two sides on the platform, from holding long positions as this market has a tendency to continue trends for longer periods, but also from newly released data used for short term trades.
Using a Times 5 multiplier on Forex trades for The U.S. Real Estate ETF.
