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Tuesday February 26, 2013
The right REIT for the housing recovery
by Doug Fabian, editor Making Money Alert The exchange-traded fund that I like for tapping the real estate sector's rebound is the SPDR Dow Jones REIT (RWR); it is an easy way to invest in real estate to ride the recovery in the housing market. This non-diversified fund seeks investment results which, before fees and expenses, correspond generally to the total return performance of the Dow Jones U.S. Select REIT Index. Following an 11.03% rise last year, RWR is up 3.21% so far in 2013. With quarterly dividends producing a yield of 2.95%, this fund offers solid income alongside capital appreciation. Housing should continue to do well, as long as the Fed continues its easy-money policies. For that reason, RWR should perform well Explicitly a trust which invests in real estate, this REIT has 100% of its holdings in the real estate sector. Its top ten holdings make up almost half of those assets at 49.1%. The largest chunk of this portfolio belongs to Simon Property Group as of the close of trading on Feb. 12, with 11.60% of the fund's holdings. The next four companies, in terms of assets held in the fund on Feb. 12, are Public Storage, 5.21%; HCP, Inc., 4.90%; Ventas, Inc., 4.64%; and Equity Residential, 4.26%. As the improving labor market and low mortgage rates contribute to the housing recovery, real estate and funds such as RWR should benefit. Include the aforementioned Fed policies, and you have a recipe for real estate success. Even if the housing rebound does not quite reach expected levels, companies in related sectors such as real estate still should show improved share-price performance, earnings and revenues. Learn more about this financial newsletter at Doug Fabian, editor Making Money Alert. Related articles 
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