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I think the distinction is due to REIT asset class covering income producing mostly commercial properties and much less exposure to residential real estate which makes the bulk of real estate.
REIT itself has been found by academics to be a diversifying asset class even though during the crisis the correlation increased significantly. I am not sure if you need exposure to the broad real estate.
In 2009-2010 people wrote commercial REIT because they lumped it along with broader real estate. Broader real estate is still struggling but REITs as an asset class is in much better shape after the credit freeze issues have resolved. They were also allowed to issue dividends as more shares as opposed to cash during the crisis which helped a lot. I wish I was wise enough to load up on REIT in 2009. In 2010, I chose to invest in FRIFX which gave me partial exposure even though people were largely against REITs in FA. I am not sure if REITs are a bargain at this time. I'm maintaining my REIT exposure via FRIFX and I have some extra exposure through my diversified funds.
Thank you for your thoughts in this area of investing. We have a nibble in FRIFX, too; but also missed the big boat. We do have access to CSRSX in another retirement acct; of which, we should have plunked some money. Cohen/Steers have been at the real estate fund game for a long time and know the market. Well, heck; we get stuck in one place or another and miss some boats, eh? When we moved some accts monies around Jan 31 of this year, among other lower risk choices was some of the monies into FINPX as a psuedo cash parking place....well, we sure missed a large part of that boat leaving the dock.
Thank you again and back to the chores before the sun gets too high in the sky and melts me away.
Comments
Thank you for the link; and one wonders what to use to "have" the real estate asset class?
Take care,
Catch
I think the distinction is due to REIT asset class covering income producing mostly commercial properties and much less exposure to residential real estate which makes the bulk of real estate.
REIT itself has been found by academics to be a diversifying asset class even though during the crisis the correlation increased significantly. I am not sure if you need exposure to the broad real estate.
In 2009-2010 people wrote commercial REIT because they lumped it along with broader real estate. Broader real estate is still struggling but REITs as an asset class is in much better shape after the credit freeze issues have resolved. They were also allowed to issue dividends as more shares as opposed to cash during the crisis which helped a lot. I wish I was wise enough to load up on REIT in 2009. In 2010, I chose to invest in FRIFX which gave me partial exposure even though people were largely against REITs in FA. I am not sure if REITs are a bargain at this time. I'm maintaining my REIT exposure via FRIFX and I have some extra exposure through my diversified funds.
Thank you for your thoughts in this area of investing. We have a nibble in FRIFX, too; but also missed the big boat. We do have access to CSRSX in another retirement acct; of which, we should have plunked some money. Cohen/Steers have been at the real estate fund game for a long time and know the market.
Well, heck; we get stuck in one place or another and miss some boats, eh?
When we moved some accts monies around Jan 31 of this year, among other lower risk choices was some of the monies into FINPX as a psuedo cash parking place....well, we sure missed a large part of that boat leaving the dock.
Thank you again and back to the chores before the sun gets too high in the sky and melts me away.
Regards,
Catch