Select REIT ETFs Have Tailwinds

“REZ gets high marks for S&P Capital IQ Risk Assessment as well as cost factors, such as its bid/ask spread. The fund’s top-10 holdings also include four stocks with favorable STARS recommendations from S&P Capital IQ equity analysts,” said the research firm.

S&P Capital IQ has an overweight rating on the Vanguard REIT ETF (NYSEArca: VNQ). Residential REITs comprised 16.1% of VNQ’s weight as of the end of the third quarter. [Diversified REIT ETFs for Yield]

With an expense ratio of just 0.1% per year, VNQ is cheaper than 93% of rival fund, according to Vanguard.

Vanguard REIT ETF

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of VNQ.