Index Account

  • They can be sold more easily. With direct real estate, it isn’t always easy to sell, especially in markets where people don’t like ‘second handhomes’ like in China and many Asian markets.
  • Long-term performance is better.
  • It can be held in the same portfolio as bonds and stock indexes. This means you can buy and rebalance.
  • They are globally diversified so not focused on just one real estate market.
  • Geopolitical risk is less when you can buy and sell online, quickly. If you buy a physical plot of land, or property, in an emerging markets, there is significant political risk. Indeed most countries in the last 50–100 years have had extreme governments that have confiscated land and private property.
  • They can be bought in seconds whereas direct real estate is time consuming.

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