Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
ALERT

Memorial Day Sale: Dividend.com Premium Price Slashed — Redeem Now

Dividend logo

Back in the “old days,” which in this case refers to the period before the 2008 financial crisis, it was widely believed that real estate was an alternative asset class, or a category of investments whose performance was uncorrelated to that of stocks and bonds.

The crisis taught us that pretty much everything is correlated at times of stress and that real estate – particularly the liquid kind embodied in publicly traded real estate investment trusts – is no exception. Since then, the positive correlation has held, although REITs have done better than the market as a whole in some years and worse in others, as you can see in comparisons between the iShares Core U.S. REIT ETF (USRT), which tracks the FTSE-NAREIT All Equity REITs Index, and the S&P 500 Index. Here are REIT vs. market performance comparisons for recent years: 8.6% vs. just under 12% in 2016, 2.8% vs. 1.38% in 2015, 28% vs.13.5% in 2014, 2.9% vs. 32.15% in 2013, and 19.7% vs. 15.9% in 2012.

Buy Now?

So if REIT stocks move with the market a lot of the time, do they offer something that dividend investors can’t get elsewhere and, if so, is this a good time to buy them?

First answer first.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Shutterstock 472583920
News

The Market Glance for May 29: Nonfarm Payrolls Headline Memorial Day Week

Investors are celebrating the unofficial kickoff of summer this week, a period normally...

Premium Shutterstock 287237753
News

The Commodities Rally Could Keep Going

As they say in the markets, this year’s losers will be next year’s winners. However,...

Premium Shutterstock 593856878%20%281%29
News

The Market Wrap For May 26: Game On!

Politics – or in this case, the lack of – continues to be a primary driver of the market’s...