Related: The 5 Best Performing ETFs of 2017
Consequently, when rates and yields rise, REITs are sold off on expectations of higher costs for financing real estate acquisitions, and their dividends become less attractive against less risky Treasuries.
“Also working in IYR’s favor is the fund’s historically bullish performance during the month of July. According to data from Schaeffer’s Quantitative Analyst Chris Prybal, IYR has averaged a July gain of 2.3% since its inception — second only to April in terms of its best monthly showing. Plus, data from Schaeffer’s Senior Quantitative Analyst Rocky White shows IYR has been one of the best ETFs to own in July, averaging a 2.5% monthly return over the past decade, and boasting an 80% win rate,” reports Schaeffer’s.
For more information on real estate investment trusts, visit our REITs category.