Are REITs essentially taboo for years now with rising rates?

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staythecourse
Posts: 5335
Joined: Mon Jan 03, 2011 9:40 am

Re: Are REITs essentially taboo for years now with rising rates?

Post by staythecourse » Mon Feb 12, 2018 6:26 pm

Church Lady wrote:
Mon Feb 12, 2018 5:11 pm
staythecourse,
VNQ, REET, USRT, IYR, FREL, XLRE, RWR, ICF, SCHH were listed in a recent article on VNQ. I'd link the article, but the author was not aware of the VNQ reconfiguration so I won't bother. I haven't looked at these myself because my 401K has that proprietary REIT fund, and hasn't got any of these except VNQ. I could try my broker's ETF screener if you need more names.
Thanks for the response. Any idea how much REIT vs. other companies are included in the new index? Just curious if it was 75/25 or 50/50 or something like that. Will have to do some research on the one's you listed and see if there is a notable difference in construction.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

youngpleb
Posts: 64
Joined: Mon Oct 16, 2017 7:06 pm

Re: Are REITs essentially taboo for years now with rising rates?

Post by youngpleb » Mon Feb 12, 2018 7:34 pm

If REITs don't perform well, I reckon I'll just keep DCA-ing down until they decide to perform otherwise. :mrgreen: I hold about 5% domestic REITs and 5% international REITS (which I am more excited about).

jalbert
Posts: 2495
Joined: Fri Apr 10, 2015 12:29 am

Re: Are REITs essentially taboo for years now with rising rates?

Post by jalbert » Mon Feb 12, 2018 7:52 pm

The effect of future interest rate changes on the return of REITs most likely will be the effect of the difference between actual future interest rate changes and the aggregate market forecast for future interest rate changes, as the latter is likely to be priced in already.
Risk is not a guarantor of return.

denovo
Posts: 3758
Joined: Sun Oct 13, 2013 1:04 pm

Re: Are REITs essentially taboo for years now with rising rates?

Post by denovo » Mon Feb 12, 2018 8:44 pm

skime wrote:
Mon Feb 12, 2018 6:22 pm
I'm not sure who created the wiki page, but they don't invest in shopping centers. They own free standing single use/tenant buildings.

Check out the investor fact sheet: https://www.realtyincome.com/investors/ ... fault.aspx
[/quote]


Shopping center =/shopping mall. Shopping centers are basically strip malls.

User avatar
telemark
Posts: 2167
Joined: Sat Aug 11, 2012 6:35 am

Re: Are REITs essentially taboo for years now with rising rates?

Post by telemark » Mon Feb 12, 2018 8:51 pm

staythecourse wrote:
Mon Feb 12, 2018 6:26 pm
Church Lady wrote:
Mon Feb 12, 2018 5:11 pm
staythecourse,
VNQ, REET, USRT, IYR, FREL, XLRE, RWR, ICF, SCHH were listed in a recent article on VNQ. I'd link the article, but the author was not aware of the VNQ reconfiguration so I won't bother. I haven't looked at these myself because my 401K has that proprietary REIT fund, and hasn't got any of these except VNQ. I could try my broker's ETF screener if you need more names.
Thanks for the response. Any idea how much REIT vs. other companies are included in the new index? Just curious if it was 75/25 or 50/50 or something like that. Will have to do some research on the one's you listed and see if there is a notable difference in construction.

Good luck.
According to Vanguard, the ratio will be 97/3.

https://www.vanguard.com/pdf/reitltr.pdf (PDF)

And to address the original question: if you are asking when REITs will hit bottom and start rising again, I don't know. If I thought I could answer questions like that, I probably wouldn't be a Boglehead. Since I don't know, I just buy whatever is the most underweight in my portfolio. Right now that happens to be REITs.

staythecourse
Posts: 5335
Joined: Mon Jan 03, 2011 9:40 am

Re: Are REITs essentially taboo for years now with rising rates?

Post by staythecourse » Mon Feb 12, 2018 11:41 pm

telemark wrote:
Mon Feb 12, 2018 8:51 pm
staythecourse wrote:
Mon Feb 12, 2018 6:26 pm
Church Lady wrote:
Mon Feb 12, 2018 5:11 pm
staythecourse,
VNQ, REET, USRT, IYR, FREL, XLRE, RWR, ICF, SCHH were listed in a recent article on VNQ. I'd link the article, but the author was not aware of the VNQ reconfiguration so I won't bother. I haven't looked at these myself because my 401K has that proprietary REIT fund, and hasn't got any of these except VNQ. I could try my broker's ETF screener if you need more names.
Thanks for the response. Any idea how much REIT vs. other companies are included in the new index? Just curious if it was 75/25 or 50/50 or something like that. Will have to do some research on the one's you listed and see if there is a notable difference in construction.

Good luck.
According to Vanguard, the ratio will be 97/3.

https://www.vanguard.com/pdf/reitltr.pdf (PDF)

And to address the original question: if you are asking when REITs will hit bottom and start rising again, I don't know. If I thought I could answer questions like that, I probably wouldn't be a Boglehead. Since I don't know, I just buy whatever is the most underweight in my portfolio. Right now that happens to be REITs.
Much appreciated. Guess I will be just continuing to throw my money down the Vanguard REIT rat hole instead of finding another one. :D

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

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