Buoyed by the Federal Reserve’s lower for longer stance on interest rates and investors’ seemingly unquenchable desire for income, real estate investment trusts (REITs) and the corresponding exchange traded funds are among this year’s most popular income-generating asset classes.
The good news for ETFs like VNQ and RWR is that interest rates may not rise much more.
“Plus, rates may not rise much more — at least for now. Friday’s employment report was weaker than expected. Bond markets have pretty much priced in one rate hike in December and recent economic growth doesn’t justify a more aggressive path,” reports Barron’s.
For more information on real estate investment trusts, visit our REITs category.