SRET - SRET: The Level Of Speculation Has Increased
2024-06-10 15:35:03 ET
Summary
- Since my latest bearish article on Global X SuperDividend REIT ETF (SRET), the fund has continued to underperform the broader REIT market, registering a negative alpha of ~250 basis points.
- In the meantime, the monthly dividends have increased, suggesting potentially stronger underlying fundamentals.
- Yet, looking at the results of recent rebalancing and the current portfolio statistics, it is clear that the risks have become more pronounced.
- I elaborate on why, in my opinion, investors should still avoid going long SRET.
I have been covering Global X SuperDividend REIT ETF ( SRET ) since April 2023. In my latest article , which was issued in late December 2023, I reassessed the investment case taking into account the effects from the potential interest rate cuts. The conclusion was to still avoid SRET since the underlying financial risk clearly outweighed the potential benefits that could stem from normalization in SOFR levels....
SRET: The Level Of Speculation Has Increased