REIT ETFs React to Real Estate Market
July 27th at 1:08pm by Tom Lydon
Markets and exchange traded funds (ETFs) have been feeling the effects of the real estate market this week. The residential real estate market woes are creeping into other sectors as well as into commercial real estate and REITs (real estate investment trusts).
In recent years, investors have shown interest in REITs, leading to hundreds of them created, both broad-based and specific (there are REITs that focus on hotels, retail buildings, even healthcare facilities), reports David Mock of The Motley Fool. This means there is a larger selection from which to choose. To make it easier, there are several ETFs that focus on REITs, giving investors the option to diversify their portfolio. Some of them include:
- iShares Dow Jones U.S. Real Estate (IYR) – down 11.6% year-to-date
- Dow Jones Wilshire REIT ETF (RWR) – down 12.4% year-to-date
- Vanguard REIT Index ETF (VNQ) – down 12.3% year-to-date
REIT ETFs are currently below their trend line and have not performed well this year. As more unfolds with the softening real estate market and subprime woes, investors can keep an eye on these ETFs and how they react.
