|Bid||47.71 x 1000|
|Ask||47.72 x 2900|
|Day's Range||47.71 - 48.53|
|52 Week Range||42.57 - 48.59|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||5.50%|
|Beta (5Y Monthly)||0.48|
|Expense Ratio (net)||0.07%|
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If you want to know what to do with your investments, watch what the superrich are doing, and follow along. According to an Aug. 5 article from Barron's, the 750 members of Tiger 21, a peer-to-peer learning network whose members are said to be worth $75 billion, are moving away from equities to cash and real estate investments. Barron's article suggested that the group had more cash in their combined portfolios at the end of the first quarter than they've had since 2013. At the end of the second quarter, the level of cash was in double digits at 12%. InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile the superrich continue to hold large amounts of cash, it's important to note that they're also increasing their positions in real estate. With stocks in a 10-year bull market and priced to perfection, the wealthy worry that the economic inequality in America is leading to an adverse outcome. * 7 Stocks Under $7 to Invest in Now To protect against the ongoing polarization of America, the wealthy are moving their assets into real estate investments and moving away from public and private equities. If you want to mimic what the superrich are doing, here are 10 real estate investments to hold for an uncertain future. Real Estate Investments to Buy: Cohen & Steers Total Return Realty Fund (RFI)Founded in 1986 by Martin Cohen and Robert Steers, Cohen & Steers was the first company to focus on listed real estate stocks. It went public in 2004 and still trades on the New York Stock Exchange. The Cohen & Steers Total Return Realty Fund (NYSE:RFI) is a closed-end fund that was launched in September 1993. Its objective is to achieve a high total return by investing in real estate securities including common stocks, preferred shares, REITs, and REIT-like entities.As of the end of June, it had net assets of $355.3 million, traded at a 3.8% premium to its net asset value, had 114 holdings, and invested 44% of its net assets in its top 10 holdings. Over the past 10 years, it's achieved an annualized total return of 16.6%, 190 basis points higher than the S&P 500. DFA Real Estate Securities Portfolio (DFREX)The next two real estate investments are mutual funds.Source: Shutterstock The DFA Real Estate Securities Portfolio (MUTF:DFREX) is an institutional class mutual fund that must be purchased through a Dimension Fund Advisors financial professional. I included it in my group of 10 investments because in my past life writing about the financial advisor community, I found DFA to be an excellent company providing good advice for its clients. I'm not suggesting you should get a financial advisor, but if you do, DFA would be an excellent place to start. As for the fund itself, it has $9.9 billion in total net assets invested in a total of 157 real estate investments, 32% of which are specialized REITs, another 16% are residential REITs, and 14% are invested in retail REITs. Its top 10 holdings account for 41% of the mutual fund's net assets. The average stock in the portfolio has a weighted average market cap of $27.8 billion with a price-to-book of 2.8. It got its start in January 1993. Over the past 10 years, it has had just one year of negative calendar year returns. That was in 2018 when it lost 3% of its value. However, it managed to deliver double-digit gains in four of those years. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Charging 0.18% plus whatever your financial advisor charges, it's an excellent way to play the real estate markets while getting professional investment advice. Fidelity Real Estate Investment Portfolio (FRESX)Source: Shutterstock The Fidelity Real Estate Investment Portfolio (MUTF:FRESX) has been in existence since November 1986. Over the past 10 years through July 31, it has delivered an average annual return of 15.41%. Year to date it's up 19.81%.As of the end of June, FRESX had $4.3 billion in total net assets invested in a total of 48 stocks with the top five holdings accounting for 31% of the portfolio, 98% of which is invested in U.S. real estate companies. Office & industrial, residential, and healthcare real estate account for 75% of the portfolio. The primary portfolio manager on the fund is Steve Buller, who has been managing it since October 1998. He turns the portfolio 15% annually, which means the entire portfolio changes approximately once every six-and-half years. Over the past decade, out of 137 funds in its category, FRESX has been ranked in the top 7%, which helps justify its annual expense ratio of 0.76%. Schwab US REIT ETF (SCHH)Source: Shutterstock One of the key features of many ETFs is that they come with reasonable fees. The Schwab US REIT ETF (NYSEARCA:SCHH) is no exception. It charges the bargain-basement rate of 0.07% annually. The ETF tracks the performance of the Dow Jones US Select REIT Index, a passive index of U.S. real estate investments. The ETF got its start in January 2011. It has $5.7 billion in total net assets with the top 10 holdings accounting for 46% of the portfolio. The other 98 holdings accounting for the rest. Like many of the ETFs, mutual funds, and closed-end funds on this list, the top three holdings are Prologis (NYSE:PLD), Simon Property Group (NYSE:SPG), and Public Storage (NYSE:PSA). I discuss two of these stocks below. * 10 Stocks to Buy on the Trade War Dip If you want cheap and good at the same time, SCHH stock is the way to go. iShares Global REIT ETF (REET)There's a big world out there. Don't let yourself get caught up in home-country bias. ETFs like the iShares Global REIT ETF (NYSEARCA:REET) is an excellent way to do that. By paying a reasonable 0.14% annually, REET gives you 65% U.S. real estate exposure along with 35% international exposure with Japan, Australia, United Kingdom, and Canada accounting for 22% of the fund's $1.7 billion in total net assets. The ETF tracks the performance of the FTSE EPRA Nareit Global REITS Net Total Return Index. The fund itself has a total of 300 holdings with the top 10 accounting for 25% of the total portfolio. The most significant holding outside the U.S. -- nine of the top 10 are U.S. real estate companies -- is the Link Real Estate Investment Trust, which trades on the Hong Kong Stock Exchange, and is the largest publicly traded REIT in Asia. In business since July 2014, REET's delivered an annualized total return of 6.2% over the past five years, considerably less most U.S. real estate ETFs, but reasonable given its international exposure. Consider this ETF if you want a hedge against a U.S. recession. Vanguard Real Estate REIT (VNQ)If you're thinking about investing in real estate ETFs, or any ETFs for that matter, it always makes sense to consider Vanguard's options. In real estate, you have the Vanguard Real Estate ETF (NYSEARCA:VNQ), an ETF with $34.7 billion in total net assets invested in 189 U.S. real estate stocks with the top 10 holdings accounting for 42% of the portfolio. A $10,000 investment in VNQ a decade ago is worth approximately $38,650 today. In business since September 2004, the ETF's averaged a total return of 8.86% since its inception. * 10 Stocks to Buy for Less Than Book As passive real estate ETFs go, it's got a relatively high turnover rate of 24%. That said, it charges just 0.12% for its management expense ratio, which makes VNQ another low-cost option to gain exposure to the U.S. real estate market. Brookfield Asset Management (BAM)As real estate investments go, Brookfield Asset Management (NYSE:BAM) is easily my favorite stock. In June, I suggested that BAM would make an excellent one-stock portfolio, much like Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), whose vast array of holdings make it more like an investment fund (without the fees) than a publicly-traded stock. Brookfield made the news this past year when it acquired Kushner Cos. 99-year lease on 666 Fifth Ave., an office building in New York that Jared Kushner's family bought at the height of the real estate market in 2006, using a whole lot of debt, getting themselves overextended in the process. Brookfield intends to renovate the building and add some retail to the mix to make it a more attractive real estate asset. If there's one thing about Brookfield, it's that it knows how to add value to the assets it buys. It's as patient an investor as you will find. As long as CEO Bruce Flatt is running the company, I continue to believe it is the best alternative asset manager in North America, if not the world. Simon Property Group (SPG)Source: m01229 via Flickr (Modified)Retail Dive, which covers the retail industry, recently published an article entitled Is Real Estate Poised to Save Retail? It was a deep dive into the plans of Simon Property Group (NYSE:SPG) and its malls. The retail apocalypse continues to be discussed by media pundits as if Simon's future is very much in doubt. This couldn't be farther from the truth. Simon is alive and well and continuing to grow.Three years ago, Simon, along with its largest rival, Greatland Gold (GGP), which coincidentally is owned by Brookfield, rescued teen/tween retailer Aeropostale from certain death. That led to speculation that it would do more deals like Aeropostale.However, it's only going to buy another retailer if it feels that retailer brings a sufficient amount of brand value to the equation along with enough volume that it's worth it for Simon to backstop a turnaround. Detractors view this as an act of desperation. I see it as smart business. If you have a retailer with 10 leases, you let it die. If you have a retailer with 100 leases, you try to bring it back to health. It's like the old saying about bankers from J. Paul Getty: "If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem." * 7 Stocks to Buy With Over 20% Upside From Current Levels Simon continues to reformat its malls to be more experiential and less product-driven. In 10 years, you won't be able to recognize its malls. Public Storage (PSA)With all the recession talk recently, you couldn't find a better real estate investment than the self-storage business. They're virtually recession-proof. That's why Public Storage (NYSE:PSA), the largest storage company in the U.S., continues to be a smart place to put your money. I like the self-storage business because except for the cost of the real estate and build-out of the storage facility, they're relatively inexpensive to maintain, making it a great way to invest in real estate over the long haul. "We joke how [tenant improvement allowance] is only $3 with self-storage: Grab a broom, sweep and then you lease it back up," said JLL Managing Director Steve Mellon recently. In the most recent quarter ended June 30, Public Storage generated core funds from operations (CFFO) of $2.64, 2.7% higher than a year earlier. Yielding 3.1%, you get paid to wait for some of its locations' real estate to grow exponentially to the point where it makes sense to sell the property. This is a buy-and-hold real estate investment if there ever was one. Ventas (VTR)Source: Sunrise1981 via Wikimedia (Modified)My InvestorPlace colleague Josh Enomoto recently picked Ventas (NYSE:VTR), one of the largest owners of seniors housing and other medical-related real estate, as a services stock worth owning for the rest of 2019 and beyond. Josh mentioned a staggering statistic: 10,000 Americans are turning 65 every day. Those people are eventually going to require a place to live where medical care and assisted living is part of the equation. Until then, they're going to be visited medical facilities more often to treat the natural side effects of aging. I have liked the stock and its CEO, Debra Cafaro, for some time. It's nice to see Ventas stock making some progress after a couple of years in reverse. Up 24% year to date through Aug. 7, including dividends, it looks as though the headwinds facing the REIT as it repositioned its portfolio, are a thing of the past. Yielding 4.4%, it's not the highest-paying REIT, but it provides you with access to the kind of real estate properties that are going to benefit from the aging of America. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Sell Right Now * 7 Stocks Under $7 to Invest in Now * 7 Marijuana Stocks With Critical Levels to Watch The post 10 Real Estate Investments to Ride Out the Current Storm appeared first on InvestorPlace.
As widely expected, the Federal Reserve cut interest rates by 25 bps for the first time since the 2008 financial crisis. We have highlighted ETFs & stocks from sectors that are expected to skyrocket on lower rates.
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Real estate investment trusts and sector-related ETFs could be an area for investors to look to as the U.S.-China trade tiff grips the markets. REITs are comprised of companies that own office towers, ...
With U.S. population rapidly aging, it is not surprising that many prescient real estate investors embrace healthcare real estate investment trusts (REITs). Some REIT ETFs have been delivering sturdy performances this year, but not all traditional REITs are healthcare REITs.Look at the MSCI US Investable Market Real Estate 25/50 Index. That index serves as the benchmark for the largest U.S. REIT ETF, but that fund devotes just 9% of its weight to healthcare REITs and four other REIT segments have larger weights in that fund."Health care REITs own and manage a variety of health care-related real estate and collect rent from tenants," according to Nareit. "Health care REITs' property types include senior living facilities, hospitals, medical office buildings and skilled nursing facilities."InvestorPlace - Stock Market News, Stock Advice & Trading TipsOne reason healthcare REITs are not heavily represented in traditional REIT ETFs is that just are not many of these type of REITs. There are just 18 healthcare REITs with a combined market value of $105.41 billion, according to Nareit data. * 7 High-Yield REITs to Buy (Even When the Market Tanks) Here are some REIT ETFs to consider with hefty healthcare exposure. iShares Residential Real Estate ETF (REZ)Source: Shutterstock Expense ratio: 0.48% per year, or $48 on a $10,000 investment.As its name implies, the iShares Residential Real Estate ETF (NYSEARCA:REZ) is a REIT ETF dedicated to residential real estate, the segment in which healthcare REITs reside. The $433.35 million REZ tracks the FTSE Nareit All Residential Capped Index and holds 44 stocks, nearly a third of which are healthcare REITs.Residential REITs are among the REITs most sensitive to changes in interest rates, but with the Federal Reserve not expected to boost rates this year and some market observers even speculating on a rate cut, REZ is up 16.65%.REZ has a three-year standard deviation of 13.84%, which is slightly higher than the category average, but that is a reflection of the aforementioned rate sensitivity. Residential REITs, including some healthcare fare, can carry lower dividend yield than traditional REIT funds as highlighted by the trailing 12-month dividend yield of 3.18% on REZ. Global X Longevity Thematic ETF (LNGR) Source: Shutterstock Expense ratio: 0.50%Admittedly, the Global X Longevity Thematic ETF (NASDAQ:LNGR) is a bit of a stretch as a healthcare REIT fund. It is not a focused ETF by any means, but it is a credible play on the aging population theme and LNGR does allocate over 8% of its weight to healthcare REITs. This thematic ETF, which recently turned three years old, tracks the Indxx Global Longevity Thematic Index.LNGR "seeks to invest in companies positioned to serve the world's growing senior population through exposure to health care, pharmaceuticals, senior living facilities and other sectors that contribute to increasing lifespans and extending quality of life in advanced age," according to Global X. * 7 Tech Stocks to Buy That Are Also Perfect for Retirement LNGR is more of a healthcare ETF in disguise than a real estate fund. Nearly 80% of the fund's 96 holdings are healthcare equipment, biotechnology and pharmaceuticals makers, giving investors some growth avenues in their quest for healthcare REIT exposure. iShares Cohen & Steers REIT ETF (ICF)Source: Shutterstock Expense ratio: 0.34%The iShares Cohen & Steers REIT ETF (CBOE:ICF) tracks the Cohen & Steers Realty Majors Index and is a focused REIT ETF with just 30 holdings. ICF is not a dedicated healthcare REIT ETF. The fund features exposure to seven REIT segments, including a 9.22% weight to healthcare REITs.ICF is one of the best-performing traditional REIT ETFs this year with a gain of 18.10% and currently resides near record highs. Specialized, residential and retail REITs combine for almost two-thirds of ICF's weight.The fund's standard deviation is less than that of the aforementioned REZ and ICF has a trailing 12-month dividend yield of 2.72%. Janus Long-Term Care ETF (OLD)Source: Shutterstock Expense ratio: 0.35%The Janus Long-Term Care ETF (NASDAQ:OLD) is another thematic ETF dedicated to the aging population theme.OLD "seeks exposure to companies globally that are positioned to profit from providing long-term care to the aging population. These include companies owning or operating senior living facilities, nursing services, specialty hospitals or senior housing, as well as biotech companies for age-related illnesses and companies that sell products and services to such facilities," according to Janus. * 7 Stocks to Buy for Over 20% Upside Potential OLD allocates almost 65% of its weight to real estate stocks and over a third of its weight to the healthcare sector. Welltower Inc. (NYSE:WELL) and Ventas, Inc. (NYSE:VTR), two of the largest healthcare REITs, combine for almost a third of OLD's weight and the fund features several other healthcare REITs among its top 10 holdings. In other words, OLD is one of the most credible healthcare REIT ETFs on the market today. SPDR Dow Jones REIT ETF (RWR)Source: Shutterstock Expense ratio: 0.25%At just over 18 years old, the SPDR Dow Jones REIT ETF (NYSEARCA:RWR) is one of the oldest REIT ETFs on the market. With 95 holdings, RWR features a deeper bench than some of the other funds highlighted here. Those holdings have a weighted average market value of $20.48 billion.Among traditional REIT ETFs, RWR's healthcare REIT exposure of 11.10% is pretty solid. The fund's one-year funds from operations (FFO) growth is 2.54%. FFO is the key REIT valuation metric used to assess the financial quality of REITs and the ability of those companies to sustain and grow dividends.Welltower and Ventas are among RWR's top 10 holdings. The fund has a dividend yield of 3.63% and is up 16.47% year-to-date. First Trust S&P REIT Index Fund (FRI)Source: Shutterstock Expense ratio: 0.50%The First Trust S&P REIT Index Fund (NYSEARCA:FRI) is often overlooked in the REIT ETF conversation, but for investors that want healthcare REIT exposure under the umbrella of a traditional real estate fund, FRI is a sensible option.FRI, which recently turned 12 years old, devotes almost 13% of its weight to healthcare REITs, which is pretty solid among standard REIT funds. Welltower and Ventas are also found among the is real estate fund's top 10 holdings. Residential, retail and specialized REITs combine for about 52% of FRI's roster. * 3 Chinese Stocks to Buy Now and Hold for the Long Haul FRI is a decent fund, but there are cheaper real estate ETFs on the market, some with more robust healthcare exposure and some that simply outperform this product. Over the past three years, FRI is trailing the largest domestic REIT ETF by 120 basis points. Schwab U.S. REIT ETF (SCHH)Source: Shutterstock Expense ratio: 0.07%For cost-conscious investors, the Schwab U.S. REIT ETF (NYSEARCA:SCHH) is one of the best REIT ETFs to consider because it is one of the least expensive. Plus, Schwab clients get the added benefit of being able to trade this fund commission-free.Home to 99 stocks, SCHH is a mostly prosaic approach to REITs, but there is nothing wrong with that. The $5.40 billion fund allocates 11.20% of its weight to healthcare REITs with the bulk of that exposure allocated to Ventas and Welltower, in that order.SCHH allocates about 40% of its weight to residential and retail REITs. Up 16.80% this year, SCHH yields 2.82%.Todd Shriber does not own any of the aforementioned securities.Compare Brokers The post 7 ETFs for Healthy Healthcare REITs appeared first on InvestorPlace.
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Investors could make a short-term play on the rate sensitive sectors in the basket form as these will continue to trade smoothly if interest rates remain muted.