Real estate funds top other investments

TRD New York /
Sep.September 03, 2010 10:30 AM

Despite bleak market conditions, mutual funds and exchange-traded funds in the real estate sector have rebounded during the past year, the Wall Street Journal reported. Real estate has been the top-performing U.S.-stock fund category this year, through August, with a 13.7 percent total return, according to Morningstar, compared with a negative 4.6 percent for the Standard & Poor’s 500-stock index over the same period. Real estate funds typically invest in commercial real estate and multi-family — not single-family — housing. They also tend to concentrate on real estate investment trusts, or REITs. Whether or not real estate funds will continue to remain strong depends on the economy, though government officials have expressed concern that the recovery is stalling. “Real estate is a leveraged play on the U.S. economy,” said Timothy Strauts, a Morningstar analyst. “If we go back into a recession, real estate will fare worse” than the broad stock market, he said, but if the economy “continues to slowly grow, real estate will continue to lead.” [WSJ]

 

Related Articles

arrow_forward_ios
Chicago resi broker will have a different kind of deal to close on “The Bachelorette”

Chicago resi broker will have a different kind of deal to close on “The Bachelorette”

Calling all agents: Reality show casts wide net for “beach junkie realtors”

Calling all agents: Reality show casts wide net for “beach junkie realtors”

Apollo aims for $1B for third real estate fund

Apollo aims for $1B for third real estate fund

VEREIT pays $85M to settle accounting scandal class-action suits

VEREIT pays $85M to settle accounting scandal class-action suits

Columbia Property Trust hires advisor following takeover offer

Columbia Property Trust hires advisor following takeover offer

Forest City’s chief development officer leaves company

Forest City’s chief development officer leaves company

(From back: Max Pixel, Piotr Siedlecki)

Why Canadian retail REITs are “hitting the jackpot”

(Credit from left: Pixabay, Canobielakepark)

For second year, major Hong Kong REIT buys back shares

arrow_forward_ios
Loading...