Tag: real-estate-investment-trust

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4 Best Long-Term Performance Real Estate Sector ETFs 1.3

  • The REIT asset class has had returns comparable to an S&P 500 index fund since 1994 while maintaining a low U.S. Market correlation of 0.57
  • The oldest available Real Estate ETF has outperformed an S&P 500 index fund by 4.13% CAGR over the last 19 years
  • There are currently 28 ETFs available in the Morningstar Real Estate Category. 9 of those ETFs are 10 years old or older

REITs vs US Large Cap Blend (aka S&P 500): January 1994 – August 2019

Source: https://www.portfoliovisualizer.com/

The oldest Real Estate ETF is the iShares U.S. Real Estate ETF (IYR). Its’ inception date was June 12, 2000. Since inception, this ETF has outperformed an S&P 500 index fund by 4.13% CAGR with a relatively low correlation to US Markets of 0.65.

IYR vs S&P 500 Index fund: July 2000 – August 2019

IYR vs SPY: June 19, 2000 – September 13, 2019

Source: https://www.koyfin.com/home Continue reading “4 Best Long-Term Performance Real Estate Sector ETFs 1.3”

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REZ Should Continue To Outperform Thanks To Several Favorable Demographic Trends

Summary
  • REZ invests in mid and large-cap residential, healthcare, and specialized REITs in the United States.
  • The fund should benefit from the trend of declining homeownership and an ageing U.S. population.
  • REZ’s fund performance is inversely correlated to the U.S. treasury yield.

Read the full article at Seeking Alpha right here: https://seekingalpha.com/article/4277199-rez-continue-outperform-thanks-several-favorable-demographic-trends

 

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Real Estate Crowdfunding Vs. Real Estate ETFs

Summary

  • Promising efficient and low-cost access to private market real estate, more than 100 online real estate crowdfunding platforms have emerged over the last decade, raising billions of dollars from investors.
  • Fundrise and other real estate crowdfunding firms have begun to offer online non-traded “eREITs” marketed primarily to younger investors as a better alternative to real estate ETFs.
  • Both FINRA and SEC have issued warnings about non-traded REITs, noting their high fees, lack of liquidity, “dividends” coming from return of capital, conflicts of interest, and lack of transparency.
  • Beneath a slick website and marketing materials, these “eREITs” are just your average highly-levered and conflict-ridden non-traded REIT. To be fair, Fundrise spells out these risks on their offering documents.
  • While we love the concept of making private real estate more accessible, these firms make misleading claims when comparing their inefficient and high-fee nontraded REITs to low-cost real estate ETFs.

Read the complete article at Seeking Alpha right here: https://seekingalpha.com/article/4268929-real-estate-crowdfunding-vs-real-estate-etfs

 

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REZ: A House Tour Of The iShares Residential REIT ETF

Summary
  • Among the most popular real estate “sub-sector” ETF, the iShares Residential Real Estate Capped ETF offers focused exposure to 44 of the largest rental landlords in the United States.
  • “Renter Nation” has been very good to REZ investors. Residential REITs have outperformed the broader sector over nearly every recent measurement period.
  • This run of outperformance is no coincidence. The effects of the historic underinvestment in new home construction continues to put upward pressure on rent growth and border housing inflation.
  • The mounting housing shortage is amplified by a large demographic wave of young millennials hitting the housing market.  Rent growth was impressive in 2018 despite record apartment supply growth.
  • There are some idiosyncrasies that investors should be aware of. The ETF is quite “top-heavy” and invests in property types not typically associated with “residential”, including hospitals and medical office buildings.

Read the full article at Seeking Alpha right here:  https://seekingalpha.com/article/4233664-rez-house-tour-ishares-residential-reit-etf

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Trimmed Some Profits In Our Real Estate Equities Today (REZ) 11-28-18

Today we trimmed some profits in our Real Estate Investment Trust (REIT) holdings. I don’t see any problems with continuing to invest in REITs at this time; this sell was simply part of our tactical rebalancing process. We prefer and invest in the iShares Residential Real Estate ETF (REZ). You can read why we invest in REZ right here: Best Long-Term Performance Real Estate ETFs 1.2

Price paid $61.56. Price sold $66.02.

 

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Best Long-Term Performance Real Estate ETFs 1.2

  • The oldest available Real Estate ETF has outperformed an S&P 500 index fund by 3.49% CAGR over the last 18 years.
  • The REIT asset class has had great returns since the 1970’s when this asset class started to be tracked.
  • Real Estate funds have been excellent low correlation asset diversifiers for investor’s portfolios
  • Evidence shows us that REIT funds can outperform owning investment real estate directly
  • There are currently 27 ETFs that fall under the Morningstar Category called Real Estate. 8 of those ETFs are 10 years old or older.

IYR vs S&P 500: July 2000 – September 2018

Source: https://www.portfoliovisualizer.com/

Continue reading “Best Long-Term Performance Real Estate ETFs 1.2”

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REITs Are A Slam Dunk Deal (REZ)

Summary:

  • Equity REITs are normally valued by three fundamentals.
  • I generally focus on individual companies within the REIT sector.
  • Within each REIT subsector, there are great stocks on sale.
  • REITs with strong balance sheets are less exposed to rising interest rates.

Continue reading the full article at Seeking Alpha right here:  REITs Are A Slam Dunk Deal

Read why the Deep Value ETF Accumulator invests in REZ right here: Discovering Value in the Top 3 REIT ETF’s

 

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Avoid The Mall With This REIT ETF – iShares Residential Real Estate Capped ETF (NYSEARCA:REZ) | Seeking Alpha

The Deep Value ETF Accumulator invests in The iShares Residential Real Estate Capped ETF REZ. $REZ This ETF is the featured ETF of this article. This article supports just one of many reasons I choose to own this ETF in our Retirement accounts.

I examine the iShares Residential Real Estate Capped ETF, which excludes retail REITs.The iShares Residential Real Estate Capped ETF only includes residential, health-care and self-storage REITs.The i

Source: Avoid The Mall With This REIT ETF – iShares Residential Real Estate Capped ETF (NYSEARCA:REZ) | Seeking Alpha

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The Best REIT ETFs For Your IRA (Seeking Alpha article)

The Deep Value ETF Accumulator invests in REZ

The full article can be read at Seeking Alpha right here: http://seekingalpha.com/article/3975128-best-reit-etfs-ira

Here’s the punchline of this article that was published on May 15, 2016:

The Winners

Here we have what we consider the best REIT ETFs for your IRA:

Conclusion

REITs are providing some of the market’s best yield, and should have a place in your IRA. ETFs can help diversify away the risk of individual stocks, and a REIT ETF in an IRA is an especially good idea in this low interest rate environment. We think the best three REIT ETFs for your IRA are the Vanguard REIT ETF, iShares Residential Real Estate Capped ETF, and PowerShares KBW Premium Yield Equity REIT Portfolio ETF.