Additionally, if the Federal Reserve hikes rates to combat rising inflation, “inflation is real estates’ best friend,” Burland East, manager of the Altegris/AACA Real Estate Long-Short Fund, said.
“Inflation will drive interest rates higher, but it also drives prices higher,” East said. “Right now we have almost no inflation but rents are going up between 4% and 6% a year.”
The three ETFs provide access to a diversified portfolio of REITs. VNQ’s top sub-sectors include retail REITs 25.5%, residential REITs 16.2% and office REITs 13.3%. IYR’s top sub-sectors include specialty REITs 30.1%, retail REITs 20.% and industrial & office REITs 18.1%, RWR’s top sectors include apartments 17.0%, regional malls 16.7% and healthcare 12.9%.
Vanguard REIT ETF
For more information on real estate investment trusts, visit our REITs category.
Max Chen contributed to this article.