The residential-housing market dropped first, followed by U.S. commercial-real estate stocks due to the spread of mortgage woes. Now investors are looking to invest in overseas properties, and some are looking at using exchange-traded funds, which can be a good or bad thing, according to The Wall Street Journal.
There are several ETFs that can give investors exposure to overseas real estate, and they are not without risk, as the credit crunch is being felt globally. Real estate stocks worldwide might experience increased volatility as investors try and grasp the extent of the damage in the mortgage market. Fears in the mortgage market have affected financials and real-estate companies.