The fund tracks an index that holds listed real estate companies and REITs in developed markets outside the US, weighted by market capitalization. It spreads exposure across major developed real estate markets such as Europe, Japan, Australia, and Hong Kong, providing non-US real asset exposure.

It suits medium- to long-term investors who want to reduce their US real estate weighting and diversify into global developed-market real estate.

It is a passive (index-tracking) ETF managed by BlackRock (iShares).

The fund holds listed real estate companies and REITs in developed markets outside the US at their index weights, tracking the performance of those markets as a whole. It includes companies with a variety of real estate business models, such as leasing, development, and management, and is broadly diversified across regions and business types.

• Concentrated exposure to developed-market real estate outside the US
• The dividend income stream typical of REITs

Assets under management (AUM) stand at $79.4M, and the total expense ratio is an annual 0.50%.

Compared with similar products in the global real estate category, the fund is distinguished by its non-US regional makeup, and differences in fees and regional weights are the main selection criteria.

Developed-market real estate responds sensitively to the direction of interest rates and to rental demand, and performance tends to vary with regional economic conditions. Currency fluctuations also affect returns when converted into Korean won.

Fund flows continue in response to non-US diversification and dividend demand, and during rate-cut phases, capital tends to flow into real estate and high-dividend assets. Demand for the fund as a satellite holding fluctuates with market conditions.

Its strengths are non-US developed-market real estate diversification and dividends, while sensitivity to interest rates and currencies and regional economic divergence are the risk factors.

Products such as REET and RWO shown in the table belong to a similar category that invests in global real estate including the US, while products such as VNQI and HAUZ are closer in character to IFGL because they offer exposure to global real estate excluding the US. Other international real estate alternatives include RWX, and investors who want to focus on US real estate itself can also consider US REIT ETFs such as VNQ and SCHH.

These are the points to review before investing in IFGL. It is useful as a satellite holding for non-US real estate diversification, but the fee level, interest rate sensitivity, currency exposure, and regional economic divergence should be checked before buying.

Rising interest rates, currency fluctuations, and regional differences in real estate cycles are the main drivers of short-term volatility. Given the nature of real estate assets, rental demand and asset values can come under pressure together during economic slowdowns.

It is worth considering as a satellite holding for investors who want to diversify into developed-market real estate outside the US. Investors who want exposure to global real estate as a whole should compare REET and RWO, and those who want a concentrated US real estate position should compare US REIT products such as VNQ and SCHH.