What's a REIT?

reit_info

REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

A real estate investment trust (REIT) is a company that owns, operates or finances income-producing real estate. REITs provide all investors the chance to own valuable real estate, present the opportunity to access dividend-based income and total returns, and help communities grow, thrive, and revitalize.

REITs allow anyone to invest in portfolios of real estate assets the same way they invest in other industries – through the purchase of individual company stock or through a mutual fund or exchange traded fund (ETF). The stockholders of a REIT earn a share of the income produced through real estate investment – without actually having to go out and buy, manage or finance property. Approximately invest in REIT stocks through their 401(k) and other investment funds.

How can I invest in REITs?

An individual may buy shares in a REIT, which is , just like any other public stock. Investors may also purchase shares in a Exchange Traded Fund (ETF).

Popular posts from this blog

NETL NET Lease Corporate Real Estate ETF

Image
Looking for investing in net lease US real estate equities? In some case NETL ETF could be a good choice. NETL is the first ETF on the market that focuses on the specific type of REIT; net lease real estate. A "net lease" is an arrangement that requires the tenant to pay all or a portion of the taxes, fees, and maintenance costs for a property in addition to rent. NETL tracks the performance of The Fundamental Income Net Lease Real Estate Index (NETLXT) is a rules-based, passive index that defines and tracks the performance of the rapidly expanding Net Lease real estate sector in a diversified manner. There is a good analysis of pro and contra of NETL by Cashflow Capitalist that not let us to say more.
Read more

VNQ Vanguard Real Estate ETF vs SPY

Image
Growth of Hypothetical $10,000 VNQ vs SPY. No dividend reinvesting, no rebalancing. The time period was constrained by the available data for Vanguard Real Estate ETF (VNQ) Oct 2004 - Dec 2020. VNQ tracks a broad index that captures much of the US real estate market. The fund holds a deep basket and its market-cap allocations mirror those of our neutral benchmark. The only place it deviates is the persistent sector bias away from specialized REITs in favor of commercial REITs.As a result of excellent portfolio management, at times, the cost of owning VNQ has even been lower than its stated expense ratio. The only blemish we see is the fact that Vanguard discloses holdings monthly rather than daily. However, this is a nuisance at most in a low-turnover fund, and immaterial to many investors. As with peer REIT ETFs, distributions from the fund are taxed as ordinary income.Prior to February 1, 2018 the fund tracked the MSCI US REIT Index. During the period of February 1 to July ...
Read more

FREL Fidelity MSCI Real Estate Index ETF vs SPY

Image
Growth of hypothetical $10,000 FREL vs SPY. No dividend reinvesting, no rebalancing. The time period was constrained by the available data for Fidelity MSCI Real Estate ETF (FREL) Mar 2015 - Dec 2020. The FREL ETF seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Real Estate 25/25 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 25/25 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 character...
Read more