|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||80.86 - 81.80|
|52-week range||72.05 - 86.14|
|PE ratio (TTM)||7.30|
|Expense ratio (net)||0.12%|
The yield on the 10-year hit its lowest level in more than a month, and the price action in a number of rate-sensitive stocks suggest even lower rates to come.
The VanEck Vectors Real Asset Allocation ETF (RAAX) uses a data-driven, rules-based process that leverages over 50 indicators (technical, macroeconomic and fundamental, commodity price, and sentiment) to allocate across 12 individual real asset segments in five broad real asset sectors. These objective indicators identify the segments with positive expected returns. Then, using correlation and volatility, an optimization process determines the weight to these segments with the goal of creating a portfolio with maximum diversification while reducing risk. ...
Rising interest rates have been the primary reason for the volatility in the real estate sector since the beginning of 2018. Despite their strong first-quarter turnaround and improving fundamentals—with marked increases in their funds from operations and net operating incomes—REITs have remained under selling pressure in 2018. The Vanguard Real Estate ETF (VNQ), which invests in a range of real estate assets including REITs, rebounded 4% in May as most REITs reported better-than-expected earnings.
In a continued effort to deregulate the economy, President Donald Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act on March 24. This new act provides some tweaks to the Dodd-Frank Act, which was enacted in 2010 in response to the 2008 financial crisis. The new legislation is skewed toward helping community banks, which would benefit from the reduced capital requirements and regulatory costs.
In the recently concluded first quarter, more than 95% of REITs reported earnings beats and maintained their guidances for 2018. Retail sector REITs, which were battered in 2017, have now stabilized, and industrial (LXP) and hotel (PEB) REITs beat expectations in the first quarter. The laggards in the first-quarter earnings season were the REITs investing in student housing, cell towers (AMT), and apartments (APT).
The real estate sector (VNQ) has been lagging in performance in 2018. The reason for this decline has been the increase in interest rates and expectations of a higher interest rate in the future, which could dent demand in the real estate sector. The performance of the real estate sector has been a roller-coaster ride as interest rate expectations have continued to change with every incoming piece of data over the last few months.
What Will Drive American Tower in 2018? While the US dollar was expected to gain from the growing economy and the rising interest rates, the recent tax cuts have flipped the scenario. With the tax rate cut, the US fiscal deficit continues to rise.
What Will Drive American Tower in 2018? American Tower (AMT) owns and operates over 160,000 communications sites around the world. The company’s top line has been rising over the past several years primarily on the back of solid property revenues.
American Tower (AMT) has remained committed to enhancing shareholder value and driving sustainable growth. The company’s 1Q18 capital deployment consists of 56% investments in the acquisition of new sites, 27% in paying out dividends, 14% in discretionary capital expenditure, and 3% in non-discretionary capital expenditure.
What Will Drive American Tower in 2018? Despite delivering a strong performance over the past several quarters, American Tower (AMT) has lowered its full-year 2018 guidance for property revenue, net income, and adjusted EBITDA by $60 million, $45 million, and $35 million, respectively, compared to the previous projection. American Tower expects property revenues to range between $6,870 million and $7,060 million, up 6.1% year-over-year.
KEMMERER: Now that we understand why the macro environment is supportive, why don’t you tell us a little bit about the investment process? What we’re doing is looking at what drives these individual real asset equities.
GILLIAN KEMMERER: Welcome, I’m Gillian Kemmerer. Building on a legacy in the real asset space, VanEck is soon to debut a new fund, ticker RAAX. It is a real assets ETF that can invest in commodities, natural resource equities, REITs, MLPs, and infrastructure. It uses ETFs to gain exposure and can also be 100% in cash. Here to tell us more about the launch, VanEck’s own David Schassler and Roland Morris. Thanks for joining us. So, Dave, why don’t we start with an elevator pitch for the fund?
The Institute of Supply Management (or ISM) releases a monthly report on economic activity in the non-manufacturing sector or the services sector. This report has a similar format as the manufacturing sector report and is prepared by conducting a survey of purchasing and supply executives in these sectors. In March, the service sector continued to grow but at a slower pace.