Real estate investment trusts (REITs) may be one of the best ways to get into the real estate market without having to go through the rigamarole of purchasing property. Plus, with projected low interest rates in the near term, investors are taking to slow growth assets like real estate.
Looking to get in on REITs action? These three high-performing REIT ETFs are up nearly 20% YTD, as of May 28, 2019.
1. iShares Cohen & Steers REIT ETF (ICF) – Up 19.52% YTD
ICF seeks exposure to large scale real estate companies that are dominant in their respective property sectors, according to the fund’s fact sheet. It tracks an index built by Cohen & Steers. Involved in real estate for more than 30 years, Cohen & Steers is “the world’s first investment manager dedicated to real estate securities.” Kiplinger.com stated, “that this has been one of the best ETFs in its class across most significant time periods.”
2. NuShares Short-Term REIT ETF (NURE) – Up 18.95% YTD
NURE provides exposure to US REITs with short-term lease agreements which may exhibit less price sensitivity to interest rate changes than REITs with longer-term lease agreements, according to the fund’s fact sheet. The fund tracks the Dow Jones US Select Short-Term REIT Index, an index composed of REITs that focus their holdings in apartments, hotels, storage facilities, and manufactured homes.
“If the market crashes, US treasury yields will likely retreat on a surge in safe-haven demand,” according to Yahoo Finance. “And if bond yields nosedive, the rate-sensitive sector REIT will likely score higher, benefiting NURE.”
3. JPMorgan Beta Builders MSCI US REIT ETF (BBRE) – Up 18.71% YTD
BBRE seeks investment results that closely correspond to the US equity REIT market, according to the fund’s fact sheet. The fund invests a minimum of 80% of its assets in securities included in the MSCI US REIT Index, a free-float adjusted market-cap weighted index made up of the stocks of publicly traded equity REITs.
According to Marketwatch.com, “BBRE is a pure play on the REIT market and provides choice to investors who are seeking core real estate index exposure,” Joanna Gallegos, US head of ETFs at J.P. Morgan Asset Management, said in a statement.
Learn more about REIT ETFs at our Thematic Investing Channel.