Fund Spy

An Inexpensive Way to Get Exposure to REITs

Ben Johnson, CFA
The following is our latest Fund Analyst Report for DFA Real Estate Securities (DFREX). Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Not a Premium Member? Gain full access to our analyst reports and advanced tools immediately when you try Morningstar Premium free for 14 days.

DFA Real Estate Securities is one of the lowest-cost options in the real estate Morningstar Category. It offers a broad market-cap-weighted portfolio that effectively diversifies risk and promotes low turnover. Dimensional's structural trading advantages further support the fund's Morningstar Analyst Rating of Silver.

This fund targets U.S. firms that are primarily engaged in the ownership, management, development, or sale of real estate, most of which are structured as real estate investment trusts. The fund extends its reach further down the market-cap ladder than most of its peers to offer comprehensive exposure to the real estate sector. But because the managers weight these holdings by market cap, the portfolio skews toward the largest real estate stocks. So, it has a comparable market-cap orientation to the category average.

Ben Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.