Real estate being such an important asset class, it might be over due to introduce this? What do you think? Something like this, perhaps: https://www.msci.com/documents/10199/0dc1184b-e692-418a-a181-5a9b8fcfa2a3
I think the issue is the fairly high yield associated with real estate funds. It would currently be unattractive to own the mAsset of these types of investments versus the actual shares.
Perhaps the dividend issue could be solved with the integration of aUST as collateral, but currently I would vote ‘No’ on a proposal to add such a mAsset.
Are there any real estate plays that don’t rely heavily on dividend yields?
Are the dividends really important? There are a lot of ETFs tradable on that index. So the dividends are included in the performance of those ETFs, right? The mAsset will mirror the tradable ETF and therefore also the dividend yields. If not, there would be an arbitrage opportunity. As long as there is an oracle price and a tradable Asset, we are good to go, right?
All things equal, dividend paying stocks will always underperform non-dividend stocks in price appreciation.
Investors incorporate total return when making decisions on investing in dividend paying stocks, but this is not possible to incorporate with mAssets currently because price appreciation = total return in Mirror.
The mAsset for a dividend paying stock should always trade at a discount relative to the real thing. Perhaps this can change when aUST is incorporated into the platform…
Yes, you are absolutely right about dividend-paying stocks. I get that.
But tsawg85 suggested an index. If we choose an ETF on the performance index not the price index, then the dividends of the stocks are included in the performance of the index → in the ETF → in the mAsset, right?
Dividends are paid out by the ETF manager. See XRE which has a (backwards looking) ~5% annual dividend yield. There are probably securitization-risks associated with anything relating to in this case removing the ex-div.