iQ Total Real Estate Model

 

 

CLICK HERE for a complimentary Model Fact-card.

INVESTMENT OBJECTIVE

The iQ Total Real Estate Model  attempts to capture profits by selecting securities from the Construction and Real Estate Investment Trust industries with strong fundamentals, valuations and price momentum versus their peers.

WHY REAL ESTATE?

The Real Estate sector has  delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation.

Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns.

These are the characteristics of real estate investment.

The iQ Total Real Estate Model is unique in that it includes stocks from the Construction industry in order to create a portfolio more representative of the Real Estate sector as a whole.

Process:

  1. Start with the 150 largest companies from the REIT and Construction industries.

  2. Rank the 150 companies by 9-month price momentum and discard of the lowest 20%.

  3. Rank the remaining 120 companies by cashflow return on invested capital and keep the top 30 companies

  4. Rank the remaining 30 companies by 3 year change in earnings per share and keep the top 10.

  5. Re-constitute every 3 months.