Specialized REITs include a group of companies that engage in alternative real estate rentals and leasing operations. For instance, self-storage REITs could benefit from our society of hoarders, especially as baby boomers shift from large single family homes to smaller apartments, assisted living facilities and nursing homes. [Residential REIT ETFs Standout]
Speaking to the end of the last paragraph, REZ, which has a trailing 12-month dividend yield of 3.21% holds allure for long-term investors because the ETF is levered to the aging population theme. Over a third of the ETF’s 38 holdings are health care REITs, the segment of the REIT universe expected to benefit most from an aging U.S. population.
Investors intending to hold any REIT for the next two years should note that at the end of August 2016, S&P Dow Jones Indices will separate REITs from the financial services group, creating an eleventh GICS sector. [REITs Get Sector Status]
iShares Residential Real Estate Capped ETF
