Indices have long played an important part in measuring the real estate market and the array of offerings illustrates the varied needs of market participants. This paper highlights the role of various real estate indices offered by S&P DJI, how they differ from each other, and how they cater to the diverse needs of real estate investors.
S&P DJI REAL ESTATE INDICES
Our diverse offerings allow investors to measure the performance of listed real estate companies in a variety of ways.
Dow Jones Select Real Estate Securities
The Dow Jones Select Real Estate Securities Indices (RESI) are cut from the S&P Global BMI and are designed to serve as a proxy for direct real estate investment. These indices measure approximately USD 24.3 billion in passive AUM and exclude companies whose performance may be driven by factors other than the value of real estate.
- Key Attributes: 75% of revenue must be derived from the ownership and operation of real estate; there is a minimum float-adjusted market cap of USD 200 million; mortgage companies and a majority of specialized real estate companies are excluded.
- Key Indices:
Dow Jones Real Estate
The Dow Jones Real Estate Index seeks to track the performance of real estate investment trusts (REITs) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies, capturing approximately USD 5.0 billion in passive AUM.
- Key Attributes: Comprehensive benchmark that includes mortgage and specialized REITs.
- Key Index: Dow Jones U.S. Real Estate Index
Dow Jones Green Real Estate
The Dow Jones Green Real Estate Indices include the same constituents as the corresponding Dow Jones Select RESI, however, company weights are modified to tilt each index toward stronger performers according to GRESB’s real estate ESG assessment.
- Key Attributes: The same constituents as the Dow Jones RESI, but weights are tilted to reward higher-performing ESG constituents.
- Key Indices: