Now that U.S. commercial real estate stocks have followed the residential housing market into the gutter as mortgage woes spread, more investors are looking to put overseas properties in their portfolios, MarketWatch reports.
Investors are getting help in pursuing international realty stocks from a trio of low-cost, diversified exchange-traded funds. The increasing number of options comes as institutional investors such as pension funds have been ratcheting up exposure to commercial real estate and are increasingly searching overseas to further diversify their stock and bond portfolios.
But the ETFs are not without risk, as the credit crunch is making its presence felt around the globe. Real estate stocks worldwide may endure heightened volatility as investors struggle to grasp the extent of the damage in the mortgage market.