Investing directly in the real estate sector may appear to be an expensive proposition for most investors. This is where ETFs come in, offering a cost effective method of investing in this industry. ETFs also offer significant protection against inflationary pressures. Research has shown that they perform better on this front compared to gold and other precious metals. Including ETFs from this sector in a well diversified portfolio helps increase returns while reducing the risk factor as a whole.
Below are the top three best performing Real Estate ETFs Year To Date.
PowerShares Active U.S. Real Estate (PSR) – is an actively traded ETF that chooses stocks from the FTSE NAREIT Equity REITS Index. It is up 8.16% year to date. This ETF has a 0.80% expense ratio compared to its category average of 0.42%.
iShares Cohen & Steers Realty Majors (ICF) – seek to replicate the performance of the Cohen & Steers Realty Majors Index. This ETF is up 6.5% year to date and currently has a 2.82% yield. This ETF has a 0.35% expense ratio below its cateogory average.
SPDR Dow Jones REIT (RWR) – tracks the total return of the Dow Jones U.S. Select REIT Index. This ETF is currently up 4.5% Year to date. It has a very low expense ratio of 0.26% well below its category average of 0.42%. This ETF also has a 3.01%.
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