A new way to play REITs

摘要

You can't blame investors for being fed up with real estate investment trusts. The average REIT stock's price fell 24% last year and has fallen another 5% so far this year. Even with REITs' relatively high yields, now averaging 7.7%, many investors are under water. And the frustration isn't new. Since 1978 (the first year for which comprehensive data are available), REITs have seriously lagged the S&P 500 index, returning 13% per year on average versus the S&P's 18%, including dividends. Maybe you think investors have been compensated for that lower return with lower risk? Nope—REITs have been more volatile, too.