Despite the slump in the housing market, some investors think this is a good time to do some bottom fishing for undervalued properties and real estate shares. REIT ETFs are a good alternative investment for those who want the real estate exposure but do not wish to purchase property. [REIT ETFs: Will They Collapse or Prosper?]
REITs actually benefit from the slowdown in construction in the commercial real estate industry. As new supply wanes, current office and commercial space is used up, creating the possibility for higher rents and cash flow for real estate companies.
REIT ETFs include:
- SPDR Dow Jones International Real Estate (NYSEArca: RWX)
- iShares FTSE NAREIT Real Estate 50 (NYSEArca: FTY) yields
SPDR Dow Jones REIT ETF (NYSEArca: RWR)
Tisha Guerrero contributed to this article.