Investors need to keep in mind that high levels of inflows and rising prices do make REITs less attractive, and the diversification benefits that REITs historically provided have become diluted. Recently, REITs have become more correlated with the equity market, reports Murray Coleman for The WSJ. [Dividend, REIT and High-Yield ETFs For Income]
As more investors become interested in the REIT asset class, the overall sentiment is that the diversification benefits and income yield are still healthy enough to keep an allocation of this asset class within a portfolio.
Other REIT ETFs:
- iShares Dow Jones U.S. Real Estate Index Fund (NYSEArca: IYR) yields 3.27%
- SPDR Dow Jones ETF (NYSEArca: RWR) yields 3.09%
- iShares FTSE NAREIT Residential Capped Index Fund (NYSEArca: REZ) yields 3.26%
Vanguard REIT Sector ETF
Tisha Guerrero contributed to this article.