REIT ETFs that limped into the end of 2013 are looking as though the sector will finish out 2014 in a much different state, as investors look for high-yield options that perform well in low interest rate environments.
REITs are one of the few investment choices that investors can turn to when looking for above-average income. Falling rates allow REITs to refinance existing investments at lower rates, in turn increasing their margins.
Year to date, the Vanguard REIT ETF (NYSE: VNQ), the largest REIT ETF, is up 23 percent. Fellow ETF, the SPDR S&P 500 ETF Trust (NYSE: SPY) is up 10 percent. However, for 2013, VNQ was down 3 percent versus SPY, which was up 26 percent.
Highlighted below are three REIT ETFs and one mortgage REIT ETF that are leading the charge in the sector this year.
iShares Cohen & Steers Realty Maj. (ETF)
The iShares Cohen & Steers Realty Maj. (ETF) (NYSE: ICF) provides exposure to large real estate companies that are fixtures within their sector. The ETF is comprised ...
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