REIT exchange traded funds (ETFs) give investors a broad base of real estate exposure while giving great tax benefits to the corporations that help build them up. They are the latest vehicle of interest for exposure during the markets latest rebound.

The past two years have been brutal for real estate investment trusts (REITs) and the funds that track them. They are regaining their popularity with investors as a cost-effective way to gain market exposure during a possible market rebound.

CNBC says that REITs are being looked at as long-term plays that will stand up against expected economic trends. Over just the past several weeks, publicly traded REITs have gone to the marketplace and raised more than $10 billion in equity, according to Real Capital Analytics. This is welcome news,  after the turmoil over the past two years saw REITs tumbling around 38%. Although 2009 saw negative numbers, March posted a 4.41%  gain and April saw a rise of just under 28%.

Many REITs are still below their long-term trend lines, however, so be sure to watch those. If REITs are something you’d like exposure to, be selective with purchases. The bigger, well-known trusts are the best bet, and look for companies that have issued equity in the last year, as these are the ones that are on the rebound, with solid, long-term growth possibility.

• First Trust S&P REIT Index (FRI): down 7.2% year-to-date; Digital Realty Trust 1.85% of assets; Essex Property Trust 1.16; Mack-Cali Realty Corp. 1.21%

• Vanguard REIT Vipers (VNQ): down 6.2% year-to-date; Digital Realty Trust 2.11%; Essex 1.41%; Mack-Cali 1.20%

Tags: Asset Class ETFs, FRI, Real Estate, REITs, Sector ETFs, VNQ