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

Investing directly in the real estate sector may appear to be an expensive proposition for most investors. This is where mutual funds come in, offering a cost effective method of investing in this industry. Real estate funds also offer significant protection against inflationary pressures. Research has shown that they perform better on this front compared to gold and other precious metals. Including funds from this sector in a well diversified portfolio helps increase returns while reducing the risk factor as a whole.

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 #3 Hold 18.8%
John Hancock Real Estate Securities #1 Strong Buy 15.1%
Managers Real Estate Securities #2 Buy 15.1%
DWS RREEF Real Estate Securities A #1 Strong Buy 14.9%
Virtus Real Estate Securities A #2 Buy 14.7%

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 3.72%.

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

John Hancock Real Estate Securities (JIREX) seeks total return. A large proportion of the fund’s assets are used to purchase equity securities issued by real estate investment trusts and companies. Not more than 10% of its assets may be invested in foreign firms. The real estate mutual fund returned 31.73% over the last one year period.

John F. Robertson is the Fund Manager and he has been managing this real estate mutual fund since 2005.

Managers Real Estate Securities (MRESX) invests at least 80% of its assets in companies whose principal operations pertain to the real estate industry. Under normal circumstances the company invests in around 40 to 55 stocks. The real-estate mutual fund has a five year annualized return of 6.44%.

As of May 2011, this real estate mutual fund held 49 issues, with 7.25% of its total assets invested in Simon Property Group, Inc.

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 2.64%.

The real estate mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.06% compared to a category average of 1.46%.

Virtus Real Estate Securities A (PHRAX) invests the majority of its assets in publicly-traded securities issued by real estate investment trusts and companies whose principal operations pertain to the real estate industry. The real estate mutual fund returned 31.92% over the last one year period.

Geoffrey P. Dybas is the Fund Manager and he has been managing this real estate mutual fund since 1998.

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

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfunds.

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