A disappointing consumer confidence report and negative housing data caused real estate investment trusts (REITs) to drop, bringing REIT exchange traded funds (ETFs) down with them. Earlier this week, the index that measures consumer sentiment dropped to its lowest level in almost two years, and a National Association of Realtors’ report showed sales of existing homes fell for a sixth consecutive month in August, reports J.W. Elphinstone for the Associated Press. Some of the real estate companies that suffered losses include:

  • Shares of Boston Properties (BXP) dropped 2.5%,
  • SL Green (SLG) fell 2.0%
  • ProLogis (PLD) lost 2.7%
  • AMB Property (AMB) fell 1.9%
  • Kimco Realty (KIM) declined 3.3%
  • Apartment Investment & Management (AIV) dropped 2.0%

All of the above companies are holdings within the streetTRACKS Wilshire REIT ETF (RWR), which is currently down 6.4% year-to-date. Some other U.S. REIT ETFs and their performance year-to-date include:

  • iShares Cohen & Steers Realty Majors Index Fund (ICF) – down 6.1%
  • iShares Dow Jones U.S. Real Estate Index Fund (IYR) – down 6.9%
  • Vanguard REIT Vipers ETF (VNQ) – down 5.6%
  • iShares FTSE NAREIT Real Estate 50 Index (FTY) – having just launched in May, FTY is up 2.8% for the last three months
  • First Trust S&P REIT Index Fund (FRI) – having just launched in May, FRI is down 0.1% for the last three months

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.