The Cambria Global Real Estate ETF (BLDG) seeks to track global real estate investment trusts (REITs) and real estate companies across developed and emerging markets. This international real estate ETF provides exposure to property sectors including residential, commercial, industrial, and specialized real estate assets worldwide.
How It Works
BLDG employs a quantitative, value-oriented approach to select undervalued real estate securities globally using fundamental metrics like price-to-book and price-to-funds-from-operations ratios. The fund actively manages its portfolio through quarterly rebalancing, focusing on REITs and real estate companies that own, operate, or finance income-producing properties. Holdings typically range from 50-100 positions across multiple countries and property types.
Key Features
- Global diversification across 20+ countries reduces concentration risk compared to U.S.-only real estate ETFs
- Value-focused quantitative screening targets undervalued properties trading below intrinsic worth estimates
- High 5.85% dividend yield provides substantial income from rent collections and property cash flows
Risks
- This ETF can lose value when global interest rates rise, as higher rates reduce property values and make REITs less attractive versus bonds
- Currency fluctuations can erode returns when foreign real estate investments decline relative to the U.S. dollar
- Real estate markets can decline 20-40% during economic recessions as property demand falls and vacancy rates increase
Who Should Own This
Best suited as a satellite holding (5-15% of portfolio) for income-focused investors with 3+ year time horizons seeking global real estate diversification. Medium-to-high risk tolerance required due to interest rate sensitivity and international exposure. Ideal for investors wanting higher yields than domestic REITs while diversifying beyond U.S. property markets.