MUTUAL FUND SPOTLIGHT: A REIT Fund Checks Out of Hotels

摘要

Real estate stocks are sizzling. This fund is playing defense. REAL ESTATE INVESTMENT trusts are in a sweet spot. The Federal Reserve cut short-term interest rates over the summer and hinted that more cuts were to come. That helps real estate companies that benefit from lower borrowing costs. Lower rates also make dividend yields on REITs more attractive. And although rates are headed lower because of worries about the economy, for now at least, the economy is still growing - and REITs are thriving. Since the start of 2019, the average real estate fund has gained 22.3%. By contrast, Standard & Poor's 500-stock index is up 17.8%.