Exchange-traded fund investors are likely measuring the resilience and relative performance of their portfolios during the latest six-month jump in interest rates.
Bond funds are the obvious areas of concern in terms of volatility. However, many stock and equity-income asset classes maintain a high sensitivity to Treasury yield fluctuations as well.
Real estate investment trusts, or REITs, certainly fall into this category and are one of the few sectors of the market currently trading well off their highs. As I wrote in September, inflection points in interest rates typically signal a change of trend for these assets.
And here are two REIT ETFs — one American and one international — to help you get into REITs.