https://www.investopedia.com/articles/mortgages-real-estate/10/real-estate-investment-trust-reit.asp?utm_source=personalized&utm_campaign=bouncex&utm_term=15422696&utm_medium=emailBy Will Ashworth
Updated Dec 4, 2018
Real estate investment trusts (REITs) are a key consideration when constructing any equity or fixed-income portfolio. They provide greater diversification, potentially higher total returns and/or lower overall risk. In short, their ability to generate dividend income along with capital appreciation makes them an excellent counterbalance to stocks, bonds, and cash. REITs generally own and/or manage income-producing commercial real estate, whether it's the properties themselves or the mortgages on those properties. You can invest in the companies individually or through an exchange-traded fund or mutual fund. There are many types of REITs available. Here we look at a few of the main ones and their historical returns. By the end of this article, you should have a better idea when and what to buy.
