The turmoil on Wall Street has led investors to seek out other areas of the market, leading them to the real estate-focused exchange traded funds (ETFs), especially those that offer large dividends. ETF Trends talked to The New York Times about it.
This small segment of the ETF industry accounts for 14 of the 850 ETFs available right now, according to Morningstar research. They do stand out as they offer 11.5% returns in dividends, as they track various real estate indexes, reports Vivian Marino for The New York Times.
Despite the speculative nature of real estate ETFs and the dismal returns of late, not all market watchers are ready to dismiss them, especially when they consider the investment alternatives — or lack thereof.
Look at the historically low interest rates, and things like money market funds and what they’re paying. If you have the staying power and room to have real estate in your portfolio, this is something to consider.
Since share prices are so low, these could be good vehicles to consider, at the point in time when you think real estate may have hit bottom.
- iShares Dow Jones U.S. Real Estate (IYR): down 32.5% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.