Investors who want to invest in real estate but can’t afford to invest in properties directly or build a diverse portfolio of REITs might consider a REIT ETF.
With REIT ETFs, individuals can invest in an assortment of properties with one low-cost investment. Real Estate ETFs can be bought and sold like shares of stock on the stock market, and just like stocks, the companies that create and manage ETFs have to provide information to the public that helps investors decide if it is a good investment. Here are 5 ETFs that have been performing well in 2019, and are poised for continued growth.
Vanguard Real Estate ETF seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of a benchmark index that measures the performance of publicly traded equity REITs and other real estate-related investments. VNQ invests in stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels, and other real property. The fund’s goal is to closely track the return of the MSCI US Investable Market Real Estate 25/50 Index. The ETF offers high potential for investment income and some growth; share value rises and falls more sharply than that of funds holding bonds. VNQ is appropriate for helping diversify the risks of stocks and bonds in a portfolio. The fund has a low 0.12% expense ratio as well, putting more money in investor pockets.
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Select REIT Index™. SCHH is a convenient, low-cost way to capture the performance of U.S. real estate investment trusts (REITs). It can serve as a convenient, low-cost way to capture the performance of U.S. real estate investment trusts (REITs). There is also no investment minimum and offers potential tax-efficiency. The expense ratio is only 0.07%.
The iShares Global REIT ETF seeks to track the investment results of an index composed of global real estate equities in developed and emerging markets. REET offers broad exposure to REITs from around the world, which invest in real estate directly and trade like stocks. The ETF provides access to income-oriented real estate stocks. Investors can use REET to diversify their portfolios, seek income, or express a sector view. The expense ratio is 0.14%.
FREL seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Real Estate Index. Investing at least 80% of assets in securities included in the fund’s underlying index. The fund’s underlying index is the MSCI USA IMI Real Estate Index, which represents the performance of the real estate sector in the U.S. equity market. Using a representative sampling indexing strategy to manage the fund. “Representative sampling” is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the index. The fund may or may not hold all of the securities in the MSCI USA IMI Real Estate Index. The expense ratio is 0.08%.
The iShares Mortgage Real Estate ETF seeks to track the investment results of an index composed of U.S. REITs that hold U.S. residential and commercial mortgages. REM offers exposure to the U.S. residential and commercial mortgage real estate sectors. Investors get targeted access to a subset of domestic real estate stocks and real estate investment trusts (REITs), which invest in real estate directly and trade like stocks. The fund can be used to diversify a portfolio and express a view on a specific U.S. real estate sector.
For more investing ideas, visit www.etftrends.com.