REIT

Real Estate Investment Trust

REIT

 

REITs are companies that own or finance income-producing real estate including residential mortgages, commercial properties, and even timber land.  Their stocks offer individual investors a highly liquid method of investing in properties that would otherwise be cost prohibitive to purchase on their own.

While REITs are technically a subset of stock, I include them in “Other” because the specific real estate exposure they offer often more resembles a commodity.  One should note, however, that various stock market funds also include REITs as part of their index.  So be sure to learn the REIT percentage already in your other funds before loading up on more.

REITs on the site specifically follow the US market.  However, because global REITs have historically been very heavily weighted to the US (50-60% today, and even higher the longer back you look), the data can also stand in reasonably well for a global REIT fund.  /// More Info ///

 

Index Funds (US REITs)

Replacement Asset

Good REIT data is not available until 1972.  Before that, I use World stocks as a replacement asset.  This is admittedly only a very loose approximation, and only small doses of REITs will avoid setting off the “estimated” tag in the calculators prior to 1972.

 


Portfolios with REIT assets