“You should see REIT prices continue to recover,” Rexroad told the WSJ.
Notably, Rexroad was particularly bullish on REITs that own multifamily apartment buildings since a healthier economy encourages people to form new households but borrowing to buy the first home remains challenge, especially among young workers.
So far this year, large apartment REITs, like AvalonBay Communities (NYSE: AVB) and Equity Residential (NYSE: EQR) are among the best performers.
For residential REITs exposure, ETF investors can take a look at the iShares Residential Real Estate Capped ETF (NYSEArca: REZ), which includes a 46.7% tilt toward residential REITs, including 8.6% in AVB and 10.4% in EQR.
Vanguard REIT ETF
For more information on real estate investment trusts, visit our REITs category.
Max Chen contributed to this article.