INTRODUCING THE NEW MSCI REAL ESTATE INDEX MODULE
In response to the needs of global real estate investors, we have launched the MSCI Real Estate Index Module: a broad suite of over 180 real estate indexes, designed to represent the performance of global real estate investment opportunities - from publicly listed real estate to direct property, from real estate operating companies and developers to REITs. The module supports all aspects of the investment process, including real estate asset allocation, portfolio construction and investment strategy. Our indexes can also be used for real estate benchmarking and as the basis for innovative passive investment products.
Our module reaches beyond traditional sector and REIT indexes to measure real estate market performance more comprehensively, by focusing predominantly on core real estate companies, those directly involved in real estate activities.
We applied MSCI’s expertise in factor indexing to our core real estate indexes, creating innovative new indexes that aim to represent the return of certain factors in these indexes.
To provide a view across private real estate markets, we included “direct property” indexes, which measure the performance of the world’s biggest geographic real estate markets.
The module also includes indexes designed to represent the sector performance of REITs and real estate management and development companies. We completed the module with our flagship US equity REIT indexes. The world’s largest real estate ETF, the Vanguard REIT ETF, has been tracking the MSCI US REIT Index for over 10 years. The ETF had total net assets of over $55 billion, as of March 31, 2015.
All indexes of publicly listed real estate in the module have 20 years of history (live and back-tested data). All indexes are constructed using MSCI’s consistent methodology and internationally recognized standards for country and sector classifications to provide transparency and replicability.