REIT Exchange Traded Funds
REIT exchange traded funds (ETFs) are ETFs which invest in securities of Real Estate Investment Trusts (REITs). They allow the shareholders to indirectly benefit from the profit of publicly traded REITs which hold profit from residential and commercial real estate markets. REIT ETFs are gaining in popularity and they are most noted for their above average dividend yields.
Now there are a number of REIT ETFs available which track different real estate indexes; the most tracked/common indexes are the Dow Jones U.S. REIT Index and MSCI U.S. REIT Index. Here are some popular REIT ETFs.
Real Estate Investment Trusts ETFs have the characteristics of both stocks and fixed income securities. Like stocks, the ETF share prices swing with news and events, and with the ups and downs of the real estate market. To qualify for corporate tax breaks at trust level, REITs should pay out most of their profits (often around 90%) to its shareholders; this offers high dividends to ETF share holders. They are also considered as good portfolio diversification tools as the real estate market does not move together with equity market. However, REIT ETFs are considered risky investments and investors should read the prospects carefully and choose the ETF best suited for them.
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Now there are a number of REIT ETFs available which track different real estate indexes; the most tracked/common indexes are the Dow Jones U.S. REIT Index and MSCI U.S. REIT Index. Here are some popular REIT ETFs.
- Dow Jones Wilshire REIT ETF (RWR)
- iShares Dow Jones U.S. Real Estate Index Fd (IYR)
- iShares Cohen & Steers Realty Majors Index Fd (ICF)
- First Trust S&P REIT Index Fd (FRI)
- Vanguard REIT ETF (VNQ)
Real Estate Investment Trusts ETFs have the characteristics of both stocks and fixed income securities. Like stocks, the ETF share prices swing with news and events, and with the ups and downs of the real estate market. To qualify for corporate tax breaks at trust level, REITs should pay out most of their profits (often around 90%) to its shareholders; this offers high dividends to ETF share holders. They are also considered as good portfolio diversification tools as the real estate market does not move together with equity market. However, REIT ETFs are considered risky investments and investors should read the prospects carefully and choose the ETF best suited for them.
NobleTrading.com Offers Online Stock Trading, Online Options Trading
Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage
posted by NobleTrading at
9:18 AM
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