Rough Ride Continues for Real Estate ETFs | Page 2 of 2 | ETF Trends

Additionally, investors would also be taking a broad view on economic growth with REITs investments. Some investment experts argue that since commercial property has a larger presence in the U.S. economy than REITs do in the equities market, investors could benefit from a 5% to 10% allocation to REITs to bring their investments more in line with commercial property’s significance in the overall economy. [REIT ETFs Still Have a Place in an Investment Portfolio]

Apartment demand has not let up, despite calls that improving economic conditions would push more into buying homes. Supporting the increased rental demand, millennials are finding jobs and moving out to cities. Without meaningful wage increases, renters may be stuck with rental apartments as they are not able to save enough for that first home down payment.

Vanguard REIT ETF