Evidently, six parts wasn't enough in my series on REITs! A question remains - individual REITs appear to be better than a utilities index fund, but that begs the question: are individual utilities better than REITs? What about small-cap value? Here I put three scenarios to the test.
And now, the end is near, REITs will face their final curtain: Should they be included as an asset class in a RP portfolio? Are they even an asset class at all? What might work better for making profitable and resilient portfolios?
We’ve covered alternatives to REITs funds: dropping them, subbing in SC Value or Utilities ETFs, and choosing individual REITs instead. But what if we think outside of equities to replace REITs? A new generation of fin-tech intermediaries show some promise. How might these work in a RP portfolio?
Maybe I have been approaching REITs wrong - maybe it’s the packaging that is the problem, not the REITs themselves. In this test, I took an unusual approach (for me) - chose ten individual REITs to see how they might compare. Good news: better than VNQ. But there’s a catch…
In the last installment, we looked at replacing REITs with other common asset classes, but what if we stretch a little farther? Utilities ETFs offer promise at doing all the things people say they want REIT ETFs to do…but better. Again, check out the backtests!