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European central bank mentioned tapering of QE this morning. The multiple QE's have been a huge support of flows into US yield-based products such as bonds, utility stocks, mlp's and reits. that multi-year trade saw some unwinding today.
REITS have had a rough couple weeks. Mine dropped 2% today on an otherwise up day for markets. It might serve well to read the comments from Ted's August 27 post: "A Good Time for REITS".
REITS have had a rough couple weeks. Mine dropped 2% today on an otherwise up day for markets. It might serve well to read the comments from Ted's August 27 post: "A Good Time for REITS".
I've had a REIT ETF for around three years (for diversification) and it is only about 8% of my portfolio so this recent activity is more of a curiosity to me than anything else.
Real estate can be a very good "alternative" investment, and has always been a good diversifier. We would allocate no more than 5-7.5% to this asset class, since many index and actively-managed funds will own real estate, too. I would consider CSRSX or ICF, depending on they type of account you have. That company has the longest track record in the sector. Understand there will be periods of losses, just like any other stock fund.
Real Estate Weekly Review: REITs See Biggest Weekly Decline In 2 Years Oct. 7, 2016 6:51 PM ET Hoya Capital Real Estate Summary The REIT Index retreated by 5% this week following 2% decline last week. All sectors were lower. REITs are now up only 3% YTD, down 13% from its recent highs. With graphics and charts http://seekingalpha.com/article/4010922-real-estate-weekly-review-reits-see-biggest-weekly-decline-2-years Article featuring Cohen and Steers ,the company. Bloomberg.com Charles Stein September 12, 2016 Cohen & Steers Inc., this year’s top-performing money manager, has prospered by satisfying the appetites of investors who crave higher yields. Assets at the company, which specializes in real estate investment trusts and preferred securities, rose 17 percent to $61.5 billion in the first seven months of the year, driven by market appreciation and more than $4.5 billion in net customer deposits. The company’s oldest mutual fund, the $6 billion Cohen & Steers Realty Shares, returned more than 12 percent annualized over the past 25 years, compared with 9.2 percent for the S&P 500 Index. The fund, up 12 percent this year, has a dividend yield of 2.5 percent, superior to the payouts on the 10-year Treasury note or the S&P 500. Its performance is similar to the Vanguard REIT Index Fund over the past three and five years. “Higher-yielding REITs are attractive in a low-yield environment,” said Alec Lucas, a Morningstar analyst who follows the real estate fund. The attraction extends beyond the U.S. With bond yields depressed throughout the developed world, Cohen & Steers’s president and chief investment officer, Joseph Harvey, told analysts on a July conference call that investors “are scrambling for yield and we believe our strategies will continue to benefit.” The firm pulled in $840 million during the second quarter from its subadvisory business in Japan through a partnership with Daiwa Asset Management. Most of the money went into U.S. REITs, which are popular in Japan. The $6.8 billion Cohen & Steers Preferred Securities and Income Fund, which has a dividend yield of 5.3 percent, gathered $1.4 billion in deposits in the first seven months of 2016, data from Morningstar show. Preferred shares, considered a stock-debt hybrid, tend to appeal to income-oriented investors. http://www.bloomberg.com/news/articles/2016-09-12/year-s-top-money-manager-gets-boost-from-yield-starved-investors
Comments
I actually just found a decent article -- finally -- about all of this here at Schwab.
http://www.mutualfundobserver.com/discuss/discussion/comment/79901/#Comment_79901
I've had a REIT ETF for around three years (for diversification) and it is only about 8% of my portfolio so this recent activity is more of a curiosity to me than anything else.
Oct. 7, 2016 6:51 PM ET
Hoya Capital Real Estate
Summary
The REIT Index retreated by 5% this week following 2% decline last week. All sectors were lower. REITs are now up only 3% YTD, down 13% from its recent highs.
With graphics and charts
http://seekingalpha.com/article/4010922-real-estate-weekly-review-reits-see-biggest-weekly-decline-2-years
Article featuring Cohen and Steers ,the company. Bloomberg.com Charles Stein
September 12, 2016
Cohen & Steers Inc., this year’s top-performing money manager, has prospered by satisfying the appetites of investors who crave higher yields.
Assets at the company, which specializes in real estate investment trusts and preferred securities, rose 17 percent to $61.5 billion in the first seven months of the year, driven by market appreciation and more than $4.5 billion in net customer deposits.
The company’s oldest mutual fund, the $6 billion Cohen & Steers Realty Shares, returned more than 12 percent annualized over the past 25 years, compared with 9.2 percent for the S&P 500 Index. The fund, up 12 percent this year, has a dividend yield of 2.5 percent, superior to the payouts on the 10-year Treasury note or the S&P 500. Its performance is similar to the Vanguard REIT Index Fund over the past three and five years.
“Higher-yielding REITs are attractive in a low-yield environment,” said Alec Lucas, a Morningstar analyst who follows the real estate fund.
The attraction extends beyond the U.S. With bond yields depressed throughout the developed world, Cohen & Steers’s president and chief investment officer, Joseph Harvey, told analysts on a July conference call that investors “are scrambling for yield and we believe our strategies will continue to benefit.”
The firm pulled in $840 million during the second quarter from its subadvisory business in Japan through a partnership with Daiwa Asset Management. Most of the money went into U.S. REITs, which are popular in Japan.
The $6.8 billion Cohen & Steers Preferred Securities and Income Fund, which has a dividend yield of 5.3 percent, gathered $1.4 billion in deposits in the first seven months of 2016, data from Morningstar show. Preferred shares, considered a stock-debt hybrid, tend to appeal to income-oriented investors.
http://www.bloomberg.com/news/articles/2016-09-12/year-s-top-money-manager-gets-boost-from-yield-starved-investors