Top 5 Best Performing Real Estate Mutual Funds (April 2011)

Mutual funds focusing on the real estate sector should continue to be part of portfolios with a long term horizon even though the sector has gone through tough times in the recent past. This category of funds has delivered good returns in the past and offers a convenient method for investing in real estate. With their low initial investment requirements, well diversified portfolios and professional management they can go a long way in lowering the risk involved. They also bring stability and steady returns over the long term.

Below we will share with you the 5 best performing real estate mutual funds year to date.

Mutual Fund Zacks Rank Total Return YTD
ProFunds Real Estate UltraSector #2 Buy 10.0%
Huntington Real Strategies A #1 Strong Buy 7.9%
Davis Real Estate A #3 Hold 7.4%
DWS RREEF Real Estate Securities A #1 Strong Buy 7.1%
Rydex Real Estate A #3 Hold 7.1%

ProFunds Real Estate UltraSector (REPSX) invests the majority of its assets in equity securities which are included in the Dow Jones U.S. Real Estate index. The fund may also purchase securities which are identical in nature and may utilize sample techniques to meet its objectives. The real-estate mutual fund has a ten year annualized return of 3.5%.

The real estate mutual fund has an expense ratio of 2.72% compared to a category average of 1.46%.

Huntington Real Strategies A (HRSAX) seeks total return. Publicly traded partnerships and trusts from the real estate sector, related equity securities and inflation protected instruments constitute the fund’s major investments. The real estate mutual fund returned 27.73% over the last one year period.

Peter A. Sorrentino is the Fund Manager and he has been managing this real estate mutual fund since 2007.

Davis Real Estate A (RPFRX) invests at least 80% of its assets companies whose principal operations pertain to the real estate industry. The fund has the freedom to invest a specific portion of its assets in companies of any size and to purchase non-equity securities. The real-estate mutual fund has a ten year annualized return of 9.4%.

As of December 2010, this real estate mutual fund held 33 issues, with 7.51% of its total assets invested in Forest City Enterprises, Inc. A.

DWS RREEF Real Estate Securities A (RRRAX) seeks capital growth over the long term and current income. The fund invests a large proportion of its assets in real estate investment trusts and companies. It focuses on acquiring common stock, but may also purchase preferred or convertible stocks. The real-estate mutual fund has a three year annualized return of 2.13%.

The real estate mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.06% compared to a category average of 1.46%.

Rydex Real Estate A (RYREX) invests the majority of its assets in domestically traded real estate equity securities. Small and mid-cap real estate companies constitute its major investments. It may also invest in options, futures, ADRs and U.S. government securities. The real estate mutual fund returned 22.72% over the last one year period.

Ryan A. Harder is the Fund Manager and he has been managing this real estate mutual fund since 2008.

To view the Zacks Rank and past performance of all real estate mutual funds, then click here.

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