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Why I Won't Buy REIT ETFs

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Jussi Askola, CFA

What's the best REIT ETF to buy for 2023? I don't have the answer. There are many reasons why I won't buy REIT ETFs or REIT Index Funds like the Vanguard Real Estate ETF (VNQ). They offer broad exposure to the REIT market with a low fee but they suffer several issues that hurt their performance. I think that investors can do better by selectively investing in highquality undervalued REITs like VICI Properties (VICI REIT), W.P Carey (WPC REIT), and Realty Income (O REIT). You can access my entire REIT Portfolio by taking a 2week free trial to my REIT newsletter, High Yield Landlord: https://seekingalpha.com/checkout?ser...'>https://seekingalpha.com/checkout?ser...

REIT ETFs like VNQ stock are heavily invested in largecap REITs that are more expensive because they are marketcapweighted. They also invest in property sectors that I prefer to avoid. They invest in externally managed REITs that suffer significant conflicts of interest. They pay a relatively low dividend yield. I think that alpha is attainable in the REIT sector and this is why I avoid VNQtype ETFs and prefer to selectively invest in individual cheap REITs. I own many of them as part of my dividend portfolio.

Take a 2Week Free Trial to my REIT newsletter to access my entire portfolio: https://seekingalpha.com/checkout?ser...'>https://seekingalpha.com/checkout?ser...

Follow me on Twitter for realtime updates on the REIT sector:   / askjussi  

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Image sources: NAREIT, YCHARTS, EPRA, Canva

Important Disclaimer: This video is impersonal and does not provide individualized advice or recommendations for any specific person. Viewers/readers should not make any investment decision without conducting their own due diligence and consulting their financial advisor about their specific situation. This video is for entertainment purposes only and you are responsible for your own investment decisions. The information is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The opinions expressed are those of the publisher and are subject to change without notice. This YouTube channel is managed by Leonberg Research OÜ, a subsidiary of Leonberg Capital OÜ.

#reits #dividend #passiveincome

posted by Proosyrultyg2