Although 10-year Treasury yields are up just 4.5 percent year-to-date, 2015 has been a trying year for real estate investment trusts (REITs) and the corresponding exchange-traded funds because investors have been fretting over the Federal Reserve raising interest rates, something that could happen as early as this week.
REITs And REIT ETFs
The Vanguard REIT Index Fund (NYSE: VNQ), the largest REIT ETF, and the iShares Dow Jones US Real Estate (ETF) (NYSE: IYR) are off an average of 3 percent this year, while broader financial services ETFs have posted modest gains.
REITs and REIT ETFs are rate-sensitive, just as their utility, preferred stock and master limited partnership peers are. However, a case can be made that economic growth is not only supportive of a rate hike, but for more upside in REIT ETFs ...
/www.benzinga.com/trading-ideas/long-ideas/15/12/6051294/new-supply-finds-its-way-into-reit-etfs alt=New Supply Finds Its Way Into REIT ETFs>Full story available on Benzinga.com
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