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.
What about accumulating ETFs like this one:
EG: iShares Core MSCI World UCITS ETF | SWDA
Dividends from owning the underlaying stocks are re-invested by the fund to by more stocks
I think the fundamental counterargument here is that the dividends are paid off in USD whereas rewards here are paid in MIR. I actually would really like to see as many as possible real world assets mirrored here. Some great ideas floating in the chats. I will not divert crypto resources to convert o UST then to USD then to go invest in the real-world asset to earn USD. It is an ecosystem.
SPY vs. mSPY? With mSPY, rewards are in MIR, so many ways to increase earnings, e.g., governance rewards alone are > 8% gains in USD with SPY, and that is on top of any price volatility you get with MIR token itself!
MIR emissions aren’t permanent.
All mAsset listings should consider the post-emissions environment.
Coming back to this, is anything being evaluated to introduce mDividends or equivalent? The fact that mAssets don’t incorporate dividends is a bit of a drag. If you wanted mSPY, for example, you are paying a 1.5% back load as well as taking a 2% (effective) hit annually from lack of dividends. That’s expensive!
Has anyone come up with a viable solution yet?
for what it is worth, not sure if it matters but UCITS (Undertakings for the Collective Investment in Transferable Securities) are not traded on US exchanges but are rather European Mutual Funds traded abroad. I realize that’s the beauty of of Mirror. If a US investor wants to invest in an UCIT they can’t in the traditional markets (sure you could probably domicile a fund there in which case you could but keeping it simple…) but are abled to with mAssets. Very cool.
This may not be the best location for the question but since a majority of the chat is about etfs paying divs and subsequently how that is/should be handled in regards to investing in mAsset. In addition to dividends, many ETFs pay out capital gains (less frequently return of capital) at the end of each year. Wouldn’t that be another shortcoming for mETFs? I would imagine they would trade at a discount since they are basically just capturing market appreciation of the ETF but don’t receive any of the income or cap gains from the basket of shares inside the ETF.