FYI: Some financial advisers and pundits helped fuel the love affair, suggesting that investors could reduce volatility and boost returns by adding real-estate investment trusts, or REITs, to portfolios in an amount exceeding their representation in broad market indexes. REITs behaved differently enough, zigging when other investments zagged, and provided solid enough returns to warrant the extra exposure, they said.
But a new study by Jared Kizer and Sean Grover of Buckingham Asset Management in St. Louis disputes the old claim about REITs. It argues that REITs deserve a portfolio weighting that reflects their own weighting in broader indexes (around 3%), but not necessarily an additional weighting that a separate asset class with different return and volatility characteristics would.
Regards,
Ted
http://www.marketwatch.com/story/why-reits-may-not-be-so-special-2017-10-18/printM* REIT Funds Total Return:
http://news.morningstar.com/fund-category-returns/real-estate/$FOCA$SR.aspx
