(REZ) iShares Residential - Ratings and Ratios

The iShares Residential and Multisector Real Estate ETF (NYSE ARCA: REZ) commits at least 80% of its capital to the securities that compose its benchmark index, while the remaining allocation may be used for futures, options, swaps, cash, and cash equivalents. This structure keeps the portfolio tightly linked to the index’s performance while allowing limited tactical flexibility.

The underlying index tracks U.S. equities in four real-estate sub-sectors: residential apartments, manufactured homes, healthcare facilities, and self-storage properties. These segments collectively represent roughly 12% of the broader U.S. REIT market, with residential apartments alone accounting for about 45% of the index’s weight.

Key market drivers for REZ include (1) the U.S. housing affordability index, which currently signals moderate pressure on rental demand; (2) demographic trends such as the aging-population boost to healthcare-related real estate; and (3) e-commerce-driven demand for self-storage, which has shown a 4.2% year-over-year occupancy growth in the last quarter.

As of the latest filing, REZ carries an expense ratio of 0.45% and manages roughly $2.3 billion in assets, with top holdings including Equity Residential, Public Storage, and Healthpeak Properties. The fund’s non-diversified status means it can experience higher concentration risk relative to broader REIT ETFs.

For a deeper quantitative breakdown of REZ’s risk-adjusted performance, the ValueRay platform offers a free, interactive dashboard you can explore.