5 REIT ETFs to Buy Now for Big Income

After being beaten down during the last few months, REIT ETFs are major buys

      View All  
5 REIT ETFs to Buy Now for Big Income

Vanguard REIT Index ETF (VNQ)

Vanguard 5 REIT ETFs to Buy Now for Big IncomeWhen it comes to low cost, there is no denying that the Vanguard’s wizards in Malvern are the leaders. And the commercial real estate sector is no exception. The Vanguard REIT Index ETF (VNQ) charges just 0.10% — or $10 per $10,000 invested — in expenses.

But the VNQ is also a heck of a fund.

The REIT ETF tracks 126 of America’s largest REITs across various property sub-types. Top holdings include apartment operator Avalonbay Communities (AVB) and hospital/medical property owner Ventas (VTR). However, the fund focuses strictly on “equity” REITs — meaning actual property owners. There are no mortgage REIT holdings in the fund. That provides investors with pure exposure to physical commercial real estate.

Investors seem to like that fact, as VNQ is one of the most heavily traded ETFs on the planet and has more than $18 billion in assets. Returns have been pretty swift as well: VNQ has managed to produce a 8.3% annual return since it first started trading in 1996.

Not to mention it kicks off a 3.77% dividend yield.


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/reit-vnq-rwx-icf-mort-kbwy/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.