Investors are Reaching for Yield with REITS
One of the worst asset classes as far as value is concerned appear to be Real Estate Investment Trusts (REITS). Since the bottom in 2009 REITS have risen over 200%; doubling the performance of equities. Over the past two years they have returned nearly 100%. REITS are not far from their all-time highs back in 2007.
Click on the chart for a larger image:
The yield on the Vanguard REIT ETF (VNQ), a good proxy for this group, is currently 3.3%. While this might appear to be a decent payout in this low rate environment, investors don’t seem to appreciate this generally covers 90% of the profits of this group. REITS are required to distribute the vast majority of their earnings.
Russ Koesterich, iShares global chief investment strategist, agrees with this assessment in the following video:
Related Posts
-
SPDR Portfolio Emerging Markets ETF Allocation IncreasedToday's widespread sell-off allowed an opportunity to increase the...
- August 14, 2019
-
Helima Croft Says Oil Demand Concerns Trumping Iranian ActionsThe US supply picture has really changed the dynamics...
- July 20, 2019
-
Ensco Rowan PLC (ESV) Position Size IncreasedThe position in Ensco Rowan PLC (ESV) was increased...
- July 11, 2019
-
Is the Retirement Crisis Really a Crisis?PBS Frontline recently presented a documentary called “The Retirement...
- April 25, 2013
-
Alarming Chart of the Stock Markets of 1987 and 2012-2013Several days ago I posted a chart showing the...
- May 22, 2013
-
Gary Shilling’s Favorite Investment: 30 Year Treasuries
Larry Kudlow interviewed Gary Shilling last week. Shilling continues...
- June 23, 2011
