FYI: This has been an interesting year for investors, as stocks and bonds rally pretty much at the same time, making the job of finding uncorrelated—or low-correlated—returns a little tricky.
This is where a segment like real estate investment trusts (REITs) comes in. REITs not only offer returns that have low correlation to traditional stocks and bonds, but so far this year, they have delivered solid outperformance relative to the broader market.
As a sample of that performance, consider the returns of the biggest real estate ETF, the $33 billion Vanguard Real Estate ETF (VNQ), and of a smart beta take on the segment, the U.S. Diversified Real Estate ETF (PPTY), relative to the SPDR S&P 500 ETF Trust (SPY) year to date:
Regards,
Ted
https://www.etf.com/sections/blog/why-real-estate-etfs-now
