Crowdfunding REITs: a new asset class for the real estate industry?
| Autor: | Gianluca Mattarocci, Lucia Gibilaro |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Risk
Settore SECS-P/11 - Economia degli Intermediari Finanziari Portfolio strategy Real estate Reits crowdfunding performance Optimal portfolio Real estate investment trust 0502 economics and business Mean variance Finance 050208 finance Settore SECS-P/11 business.industry 05 social sciences General Engineering General Business Management and Accounting Performance Diversification REITs Risk Crowdfunding Optimal portfolio Diversification Portfolio Business General Economics Econometrics and Finance 050203 business & management |
| Popis: | PurposeThe paper aims to study the performance of crowdfunding REITs with respect to traditional REITs in order to evaluate the differences in the risk–return profile and their usefulness for a diversification strategy within the indirect real estate investments.Design/methodology/approachThe paper considers the crowdfunding REITs introduced after the JOBS act in the United States and evaluates their performance and risk during the time period 2016–2018. Performance achieved by crowdfunding REITs is compared with other types of REITs in order to evaluate their usefulness for constructing an optimal portfolio strategy based on a standard mean variance approach.FindingsResults show that the performance of crowdfunding REITs is more stable over time with respect to other REITs and the lack of correlation with traditional REITs may be exploited for constructing a more efficient diversified portfolio of indirect real estate investments.Practical implicationsCrowdfunding REITs have different performance with respect to standard REITs and, especially individual investors, may benefit from including this new investment opportunity in their portfolio.Originality/valueThe paper is the first study on the performance of the crowdfunding REITs that is evaluating their usefulness for a diversification strategy within the real estate sector. |
| Databáze: | OpenAIRE |
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