The REIT fund has a three-year annualized return of 20%, compared with 13% for SPDR S&P 500.
The Vanguard REIT ETF tries to reflect the performance of the MSCI US REIT Index, which holds stocks issued by real estate investment trusts companies that purchase office buildings, hotels and other real property.
VNQ has a 3.43% 12-month yield and is up 1.2% over the past month, up 8.9% over the last three months and up 17.5% in the past year.
“Equity REITs are a hybrid asset class, offering yield and the possibility of capital appreciation,” according to Morningstar analyst Abby Woodham. “These firms generate income by managing properties and collecting rent. They are required to distribute at least 90% of their taxable income to shareholders, which is the source of their desirable yield.”
“In the past, REITs were viewed as a liquid way to buy commercial real estate and improve a portfolio’s diversification,” Woodham added. “Real estate also has some inflation-hedging qualities.”
Source: Tom Lydon, ETF Trends
VNQ is a component of the D2 Capital Management Multi-Asset Income Portfolio.
The information contained in this article does not constitute a recommendation, solicitation, or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.
The Jacksonville Business Journal
has ranked D2 Capital Management in the top 25 of Certified Financial
Planners in Jacksonville. The Firm is also a member of the Financial Planning Association of Northeast Florida.
D2 Capital Management is a Member of the Southside Businessmen's Club and the Beaches Business Association
D2 Capital Management is a Member of the Southside Businessmen's Club and the Beaches Business Association
No comments:
Post a Comment