Move into real estate with REITs, ETFs

Rreal estate investment trusts (REITs) and Vanguard Real Estate ETF (VNQ) allow advisors to invest in real estate without actually owning it.

REITs are an ideal option for investors looking to add additional income and liabilities. Additionally, investors can reap the benefits of price appreciation, especially in today’s real estate environment.

“REITs give investors the ability to invest in real estate without the expense of buying and maintaining real property,” Yieldstreet explained. or fixed income portfolio.

VNQ seeks to provide a high level of income and moderate capital appreciation over the long term by tracking the performance of the MSCI US Investable Market Real Estate 25/50 Index which measures the performance of REITs in publicly traded stocks and others. investments related to real estate. The bottom :

  • Invest in stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels and other real estate.
  • Aims to track the performance of the MSCI US Investable Market Real Estate 25/50 Index.
  • Offers high potential for investment income and some growth; the value of stocks rises and falls more sharply than that of funds holding bonds.
  • Can help offset equity risk.

A diversified real estate portfolio

According to the Yieldstreet article, “Put simply, passive real estate investing invests in real estate without substantial practical effort or active investor participation.”

With diversification comes a deep well of assets to mitigate concentration risk. The largest stake on 4/30/21 is American Tower Corp.

“VNQ, which tracks the MSCI US Investable Market Real Estate 25/50 index, has 174 positions,” explained an Investorplace article. “Since its inception in September 2004, net assets have reached $ 72.9 billion. In other words, it is one of the biggest real estate ETFs.

The top three sectors of the fund include Specialty REITs (37.7%), Residential REITs (13.8%), Industrial REITs (10.7%), Retail REITs (10%), and REITs health care (8,%). investing in telecommunications and data center spaces, which have seen increased growth in recent quarters, ”the article adds.

For more news, information and strategy, visit the website Fixed income channel.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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