Small-cap REIT ETFs are a smart option at the time because of the ability of small-cap companies to outperform during a rising market. Also, the smaller companies are able to avoid global stock market volatility unlike large-caps, which are usually tied to multinational firms and are vulnerable to overseas uncertainty. [Evaluating Small-Cap REIT ETFs]
That case is bolstered that the Russell 2000 has recently been outpacing the S&P 500 with the small-cap index up 4% over the past 90 days compared to 2.5% for the U.S. benchmark index.
Since inception on June 14, 2011, ROOF has posted an annualized return of 14.25 percent, compared to 7.80 percent for the all-cap Dow Jones U.S. Real Estate Index. The fund is broadly diversified and includes exposure to mortgage REITs, office REITs, hotel REITs, specialized REITs, retail REITs and more,”according to a statement by IndexIQ.
IndexIQ US Real Estate Small Cap ETF