“Adding REITs to a hypothetical portfolio increased returns with no increase in risk and reduced the risk of retirees outliving assets. REITs have provided stable income despite inflation and market fluctuation,” according to Nareits.
For those looking fore REITs exposure, investors may turn to sector-specific ETFs, such as the Vanguard REIT ETF (NYSEArca: VNQ), iShares Dow Jones US Real Estate Index Fund (NYSEArca: IYR) and Schwab US REIT ETF (NYSEArca: SCHH). VNQ has a 3.59% 12-month yield. IYR has a 3.66% 12-month yield and SCHH has a 2.73% 12-month yield.
For more information on the real estate investment trusts segment, visit our REITs category.