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JIREX or RRRAX: Which Real Estate Mutual Fund to Buy?
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For investors looking to park their money in the real estate sector, mutual funds are the cheapest and most convenient options. This category of funds offers solid protection against inflation. The real estate sector has recently seen tough times but the presence of this investment vehicle adds stability to a portfolio. Usually, volatility in property prices is far less than the extent experienced by stocks. Adding such funds to a widely-diversified portfolio would increase returns, while significantly reducing the associated risk.
Meanwhile, the Real Estate Select Sector SPDR Fund (XLRE) has gained 12.8% over the past month despite extreme market volatility. So, investing in real mutual funds seems prudent as of now. Let us look at two of the best funds from the space and find out which one is a better investment.
John Hancock Funds II Real Estate Securities Fund Class 1 (JIREX - Free Report)
The fund seeks appreciation of capital and income over the long term. JIREX invests primarily in equity securities of companies engaged in operations related to the real estate sector, which includes REITs. The fund invests in securities like common stocks, preferred stocks and convertible securities. It may invest a maximum of 10% of its assets in securities of companies domiciled outside the U.S. territory.
This Sector-Real Estate product has a history of positive total returns for over 10 years. Specifically, the fund’s returns are 10.5% over a three-year period and 6.7% over a five-year period. To see how this fund performed compared with its category, and other #1 and #2 Ranked Mutual Funds, please click here.
John Hancock Funds II Real Estate Securities Fund Class 1, as of the last filing, allocates assets in the top two major group; Foreign Bond and High Yield Bond. Further, as of the last filing, EquinixInc and Prologis Inc were the top holdings in JIREX.
This Zacks Mutual Fund Rank #1 (Strong Buy) fund was incepted in October 2005 and is managed by John Hancock. JIREX carries an expense ratio of 0.80% and requires a minimal initial investment of $0.
DWS RREEF Real Estate Securities Fund - Class A (RRRAX - Free Report)
The fund seeks long-term capital growth and current income. The fund invests majority of assets in equity securities of real estate investment trusts and real estate companies.
This Sector-Real Estate product has a history of positive total returns for over 10 years. Specifically, the fund has returned0.5% over the past three years. To see how this fund performed compared with its category, and other #1 and #2 Ranked Mutual Funds, please click here.
DWS RREEF Real Estate Securities Fund - Class A, as of the last filing, allocates assets in the top two major groups, Foreign Bond and High Yield Bond. Further, as of the last filing, EquinixInc and Prologis Inc were the top holdings for RRRAX.
This Zacks Rank #1 (Strong Buy) fund was incepted in November 1999 and is managed by DWS. RRRAX carries an expense ratio of 0.97% and requires a minimal initial investment of $1,000.
To Conclude
While both JIREX and RRRAX are buy-rated funds, upon taking a closer look, we find that the former is a clear winner. Meanwhile, both the funds are dirt cheap. However, the administrative and other operating expenses of RRRAX are higher than JIREX’s.
Furthermore, JIREX offers lower risk compared to RRRAX. Notably, RRRAX has a three-year beta of 0.7 compared with JIREX’s 0.4. Therefore, JIREX is the fund that should be on your radar, given its lower costs and consistency in providing high returns on investment.
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JIREX or RRRAX: Which Real Estate Mutual Fund to Buy?
For investors looking to park their money in the real estate sector, mutual funds are the cheapest and most convenient options. This category of funds offers solid protection against inflation. The real estate sector has recently seen tough times but the presence of this investment vehicle adds stability to a portfolio. Usually, volatility in property prices is far less than the extent experienced by stocks. Adding such funds to a widely-diversified portfolio would increase returns, while significantly reducing the associated risk.
Meanwhile, the Real Estate Select Sector SPDR Fund (XLRE) has gained 12.8% over the past month despite extreme market volatility. So, investing in real mutual funds seems prudent as of now. Let us look at two of the best funds from the space and find out which one is a better investment.
John Hancock Funds II Real Estate Securities Fund Class 1 (JIREX - Free Report)
The fund seeks appreciation of capital and income over the long term. JIREX invests primarily in equity securities of companies engaged in operations related to the real estate sector, which includes REITs. The fund invests in securities like common stocks, preferred stocks and convertible securities. It may invest a maximum of 10% of its assets in securities of companies domiciled outside the U.S. territory.
This Sector-Real Estate product has a history of positive total returns for over 10 years. Specifically, the fund’s returns are 10.5% over a three-year period and 6.7% over a five-year period. To see how this fund performed compared with its category, and other #1 and #2 Ranked Mutual Funds, please click here.
John Hancock Funds II Real Estate Securities Fund Class 1, as of the last filing, allocates assets in the top two major group; Foreign Bond and High Yield Bond. Further, as of the last filing, EquinixInc and Prologis Inc were the top holdings in JIREX.
This Zacks Mutual Fund Rank #1 (Strong Buy) fund was incepted in October 2005 and is managed by John Hancock. JIREX carries an expense ratio of 0.80% and requires a minimal initial investment of $0.
DWS RREEF Real Estate Securities Fund - Class A (RRRAX - Free Report)
The fund seeks long-term capital growth and current income. The fund invests majority of assets in equity securities of real estate investment trusts and real estate companies.
This Sector-Real Estate product has a history of positive total returns for over 10 years. Specifically, the fund has returned0.5% over the past three years. To see how this fund performed compared with its category, and other #1 and #2 Ranked Mutual Funds, please click here.
DWS RREEF Real Estate Securities Fund - Class A, as of the last filing, allocates assets in the top two major groups, Foreign Bond and High Yield Bond. Further, as of the last filing, EquinixInc and Prologis Inc were the top holdings for RRRAX.
This Zacks Rank #1 (Strong Buy) fund was incepted in November 1999 and is managed by DWS. RRRAX carries an expense ratio of 0.97% and requires a minimal initial investment of $1,000.
To Conclude
While both JIREX and RRRAX are buy-rated funds, upon taking a closer look, we find that the former is a clear winner. Meanwhile, both the funds are dirt cheap. However, the administrative and other operating expenses of RRRAX are higher than JIREX’s.
Furthermore, JIREX offers lower risk compared to RRRAX. Notably, RRRAX has a three-year beta of 0.7 compared with JIREX’s 0.4. Therefore, JIREX is the fund that should be on your radar, given its lower costs and consistency in providing high returns on investment.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>