The proliferation of publicly traded real estate investment trusts (or REITs) has created access to a global menu of high dividend paying securities. REITs function by generating income from rents and property development that is ultimately passed on to shareholders in the form of dividends.
This creates a highly coveted asset class for income oriented investors to park their capital outside of the traditional methods of stocks and bonds. In addition, accessing these REITs has never been easier through low-cost exchange-traded funds that allow you to hone in on specific sectors, geographies, or broad-based themes.
The largest ETF in the real estate space is the Vanguard REIT ETF (
VNQ
), which has a whopping $28.8 billion in total assets. VNQ invests in a broad basket of 140 U.S.-listed REITs that include residential, office, hospital, and retail sectors.
Read Full Story: Real Estate ETF Momentum Has Shifted Overseas
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