In an off day for stocks, you might be wondering where money did flow. In Top Equity News’ review of yesterday’s top ETF performers, we found five REITs (real estate investment trust) in the top six. Maybe, REITs are the hiding place for institutions when the markets turn sour.
The fistful of yesterday’s best performing exchange traded funds includes:
- iShares FTSE NAREIT Residential (REZ)
- Wilshire US REIT (WREI)
- iShares FTSE NAREIT Mortgage REIT (REM)
- Vanguard REIT ETF (VNQ)
- First Trust S&P REIT Index Fund (FRI)
In our review of common holdings, TEN found seven stocks that are in at least three of the ETF portfolios.
- Equity Lifestyle Properties, Inc. (ELS)
- Camden Property Trust (CPT)
- Colonial Properties Trust (CLP)
- Home Properties, Inc. (HME)
- Apartment Investment and Management (AIV)
- AvalonBay Communities, Inc. (AVB)
- American Assets Trust, Inc. (AAT)
All of the equities above offer nice dividends for investors, but, in an extremely close call, our favorite stock chart belongs to Colonial Properties Trust (CLP). The REIT primarily invests in multifamily, office, retail, for-sale properties and currently pays a 3.50% dividend.
From our technical analysis perspective, Colonial lit up a volume-weighted MACD crossover yesterday. The volume-weighted version of moving average velocity is a better predictor than just the price related variety. According to what TEN has read, studies show there is less risk and better returns when volume is taken into consideration.
CLP has experienced five previous volume-weighted crossovers in the past year. The predictor is batting 100% as every case has seen CLP rise following the technical buy signal. With that track-record, it’s hard to ignore the 6th occurrence.
TEN believes Colonial Properties Trust (CLP) could be a proper fit for conservative investors. A 10%-15% capital gain is about what we expect. Add in the 3.50% dividend, and a total return of 13.50%-18.50% for long-term investors is possible.
ETF X-Ray: A New Home for Wall Street’s Money is an article from: 
