Kat • April 22, 2019 • Rockstar Content
Last modified: April 23, 2019
The S&P is up exactly 16%, 3 points more than the quoted US FTSE All Equity REIT index. Your first sentence “Stock market remained muted” is completely incorrect.
Great analysis! I really like residential REITs (I’m wary of commercial ones because of the “retail apocalypse” and what seems to be like an increase in telework (thus reducing the need for office space)).
I currently hold Independence Realty Trust (IRT), AvalonBay Communities (AVB), and a few others, and they’ve done well for me.
The first line of the article almost made me stop reading: “Despite surging 16% in 2019 while the stock market remained muted,…”
The S&P is up 16.76% for the year 2019. That’s “muted”? If the argument is based on REITs outperforming the stock market in 2019, the facts don’t seem to support it.
The rest of the article has some good and useful information and some food for thought. You might want to edit the first line, though.
Thank you so much for alerting us. We drafted that article a few months ago and the S&P has since made a comeback. We fixed that sentence!
So, when coming up w/ amount in your portfolio, should you consider how much real estate makes up your current mutual fund portfolio? For instance, right now real estate makes up 3.92% of VTSAX and 12.93% of VSIAX
That is what we currently do, so have a smaller % in REITs based on holdings in our other funds…
I’m a big fan of buying residential rental properties. I have never invested in a REIT before because I never did any homework on educating myself on that asset type.
Thank you for the useful information in this article. I think I will spend some time in the near future educating myself on REITs to see if they have a place in my portfolio.
There are times where after another missed rent check or clogged sewer, I run a bunch of REIT analysis and think how much simpler it can be than owning rentals. While I’ve always liked the control I have over a specific property and the microeconomic situation of that property, REITs have a place for me too.
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