WREI features exposure to health care REITs, hotels & resort REITs, industrial REITs, office REITs, residential REITs, retail REITs and specialized REITs.
In addition to interest rate risk, some analysts believe REITs are richly valued after soaring this year. WREI seems to fit the bill with a P/E ratio of 51 at the end of the second quarter, according to Guggenheim data.
On an adjusted funds from operations basis, a metric for valuing REITs, the asset class looks expensive. However, relative to bonds, an asset class some investors often use REITs in place of, REITs are attractively valued. That indicates WREI could continue making new highs. WREI is up 2.5% over the past month.
Guggenheim Wilshire US REIT ETF
