PowerShares Active U.S. Real Estate Fund
Helping to round out our diversification is an investment in the PowerShares Active U.S. Real Estate Fund (PSR), which invests in equity real estate investment trusts — tax-advantaged companies that must distribute at least 90% of their income to shareholders.
The $33 billion fund holds REITs across a nice spectrum of businesses. For instance, American Tower (AMT) holds cell phone tower assets, Public Storage (PSA) specializes in self-storage facilities, and Weyerhaeuser (WY) holds timber acreage.
PSR’s performance has been good, though not spectacular, averaging a 12% total return in the past three years, though a decent chunk recently has been torn away amid a bad month for most real estate and housing-related investments.
PowerShares Active U.S. Real Estate distributes quarterly.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long JNJ and GE.