The Vanguard REIT ETF (NYSEArca: VNQ) brought in $1.25 billion in inflows over the past month, attracting the most money within the space. The iShares U.S. Real Estate ETF (NYSEArca: IYR) brought in $506 million in assets. [Mortgage REIT ETFs Could Merit A Second Look]
“Deep discounts coming into the beginning part of this year combined with the dividends these REITs are paying woke people up to the fact that they looked pretty attractive,” Gavin James, chief executive officer of Western Asset Mortgage Capital Corp., said in the article.
VNQ is up 5.6% over the past year and shows a 3.95% 12-month yield. IYR rose 3.4% over the past year and comes with a 3.48%12-month yield. The dividend yield on the Blomberg REIT Index is 3.6%. [Global REIT ETF Ready to Roll Higher]
REITs hold property-linked assets and receive a favorable tax treatment as they pay out 90% of their taxable income in dividends, which also make the investments a go-to asset for income-generation.
For more information on the real estate market, visit our real estate category.
Max Chen contributed to this article.