ETF Update: Time for REITS?
Jeffrey Miller (April 19th, 2009) Writes:
Sometimes price action seems inconsistent with the fundamental story. One of the ways we use our ETF rankings is to highlight developments that deserve further investigation.
While financial sectors in general earn continued strong ratings, the most noteworthy feature of the new ratings is the rapid rise of two Real Estate Investment Trust (REIT) ETF's. (The complete current rankings are at the end of the article, along with an explanation of our methodology).
Surprising REIT Strength
Investors who choose REIT's general seek high yield and tax advantages. The REIT must return 90% of income to unit holders to avoid taxation at the trust level. Since certain non-cash expenses like depreciation reduce income, investors determine value as a multiple of adjusted funds from operations (AFFO) rather than a PE multiple. The REIT provides smaller investors the opportunity to add real estate of various types ...
Tags for this Post:
Associated Press, Cohen;, continued weak retail sales;, david fry, Dow 30, Dow Jones, Dow Jones U.S. Real Estate, energy, iShares Dow Jones U.S., Mark Jewell;, Market Commentary, Real Estate, real estate investment trust, S&P, Sameer Bhatia;, Simon Property Group Inc., U.S. Real Estate Index Fund;, Vornado Realty Trust
Associated Press, Cohen;, continued weak retail sales;, david fry, Dow 30, Dow Jones, Dow Jones U.S. Real Estate, energy, iShares Dow Jones U.S., Mark Jewell;, Market Commentary, Real Estate, real estate investment trust, S&P, Sameer Bhatia;, Simon Property Group Inc., U.S. Real Estate Index Fund;, Vornado Realty Trust


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