Both ETFs track the same index, yet RWR returned almost a full percentage point more in dividend distributions! One similarity is that the Top-10 holdings are almost exactly the same in all 3 ETFs; with General Growth Properties (GGP) just slipping out of the 10th spot in VNQ, replaced by Vornado Realty (NYSE:VNO). Copyright © Disclaimer: Backtested, simulated or hypothetical performance results have certain inherent limitations.
One last thing, if at all possible it is preferable to hold REITs in tax-deferred accounts.
quotes delayed at least 15 minutes, all others at least 20 minutes. I listed them in the order I did based on some commonalities I encountered in my research.
You're probably already noticing the second surprise, aren't you? No representation is being made that you will or is likely to achieve profits or losses similar to these being shown. VNQ has a higher 5-year return than USRT (5.02% vs 3.72%). In other words, was there a greater increase in the share price of SCHH that would offset the higher dividend paid by RWR? Only Schwab U.S. REIT SCHH, Fidelity MSCI Real Estate FREL, and iShares Core U.S. REIT USRT can challenge VNQ's low price. Additionally, some of the best choices also fit the bill as cheap REIT ETFs. Surely the greater dividend compensated for this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t the same time, SCHH is a worthy competitor. As of the latest published data, the total weight of the Top-10 holdings in RWR and SCHH is 44.63% and 44.61%, respectively. "Yep, pretty much confirms that VNQ is the king," I proudly thought to myself.
Residuals of the regression are plotted and analyzed further: Profit analysis is a set of backtests performed using multiple pair trading models over significant portion of parameter space.
Unlike the results shown in an actual performance record, these results do not represent actual trading. This is the profit analysis where backtested strategies are allowed to open both long and short positions: This is the profit analysis where backtested strategies are allowed to open long positions only: This is the profit analysis where backtested strategies are allowed to open short positions only: This profit analysis has been performed using strategies with inverted signals and transformed prices. Both ETFs are great, low-fee investment options for your portfolio. Disclosure: I am/we are long VNQ. I have no business relationship with any company whose stock is mentioned in this article.
Backtested strategies have been allowed to open both long and short positions: © 2011 - 2019 Quantverse OÜ.
DXJR tracks the WisdomTree Japan Hedged Real Estate Index. [])). Here we apply an orthogonal regression (also known as total least squares) to both price series. Please log in or sign up to get more functionality and access your account. These factors would affect actual trading results.
"Perhaps," I thought, "this was just an aberration, something about the timing." REITs can enhance your core portfolio by helping you diversify into an added asset class. Just two stocks — Annaly Capital and AGNC Investment REIT Corp. (NASDAQ:AGNC) — combine for almost 28% of this REIT ETF’s roster. With that bit of housekeeping out of the way, the world of exchange-traded funds (ETFs) make it easier for investors to access REITs while eschewing the need to try to pick the best individual real estate securities. And this iShares ETF offers plenty in the way of yield with a trailing 12-month dividend yield of almost 8.7%. In July, Vanguard filed plans with the Securities and Exchange Commission (SEC) to alter VNQ’s investment objective and swap its index. The backtested results listed here do not take into consideration slippage, fees, taxes, or dividends and interest earned on cash positions. You could look to REITs to diversify your core equity portfolio with assets that have tangible assets. USRT is one of several REIT ETFs in the iShares family and also the least expensive. VNQ has a higher expense ratio than USRT (0.12% vs 0.08%). This ETF holds 26 stocks, but is dominated by Annaly Capital Management Inc. (NYSE:NLY), which yields 9.7% and accounts for almost 14% of MORT’s roster.
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Nasdaq Furthermore, it has a three-year standard deviation of 14%. USRT is only the 7th largest REIT ETF by assets - it's not even the largest iShares real estate ETF; that title belongs to the iShares U.S. Real Estate ETF - but on my list, it ranks #1.
As you might quickly gather, VNQ is the obvious winner in terms of greatest diversification. I next started wondering how the comparative share prices had performed over that period?
In terms of sectors, all three track fairly closely, with a slightly higher percentage of residential REITs being featured in RWR and SCHH; approximately 20.2% vs. 17.3% in VNQ.
That didn't necessarily surprise me so much, as SCHH carries a lower expense ratio.
All rights reserved. Have a look at this 1-year chart: The first item that jumped out at me was that SCHH's share price had appreciated by 2.69% over that year, compared to 1.66% for RWR. So I ran the same chart, but YTD through June 30. You may also want to check out the following USRT comparisons that investors often look for on Finny. VNQ's share price performance substantially trailed the other two; losing .20% over the period. REM has a three-year standard deviation of 11%. Article printed from InvestorPlace Media, https://investorplace.com/2017/09/8-reit-etfs-to-buy-long-term-gains/.
As an investor, this means that you would pay tax at your highest marginal tax rate. iShares and Vanguard both offer an index REIT ETF. But then something caught my attention with respect to RWR (in blue) and SCHH (in brown).
Expense Ratio: 0.12% per year, or $12 annually per $10,000 invested. The Index is comprised of the 50 largest REIT companies within the FTSE NAREIT Composite Index. Speaking of high-yielding REIT ETFs, there is the PowerShares KBW Premium Yield Equity REIT Portfolio (NASDAQ:KBWY). A hidden gem from the lineup of Global X ETFs, the Global X SuperDividend REIT ETF (NASDAQ:SRET).