An ETF dedicated to global real estate investment trusts with a decent yield is breaking out to its highest levels since 2008.
SPDR Dow Jones Global Real Estate (NYSEArca: RWO) posted a total return of 26% last year and currently sports a dividend yield of 3.9%. [Real Estate ETFs for Dividends]
The fund outperformed its counterparts that focus on U.S.-based REITs such as Vanguard REIT (NYSEArca: VNQ), which gained roughly 18% in 2012.
REITs are touted for diversification but they ended up falling harder than the S&P 500 during the 2008 financial meltdown.
However, for four years, real estate investment trusts have offered investors an irresistible combination: Market-beating returns alongside a juicier stream of income than bonds, Barron’s reports.
“While performance in the U.S. has been good, international REITs have been terrific,” Barron’s noted.