Reit etf

[wallygator69]

Howdy,

The recent go it on dividends alone thread got me looking at Dividend paying ETF's. I have no REITS and this puppy has a yield over 8% and seems to be in a good position from what I have found with Google. I am looking to put this 100% in a small ROTH that is about 4% of our total portfolio. Anyone recommendations or better ideas would be appreciated.

thx

Wally



The Highest-Rated REITs

By Dan Dzombak | More Articles
November 8, 2011 | Comments (0)
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the 10 stocks below are the highest rated in the REIT industry.
CAPS contains more than just the crowd's opinions. The votes of CAPS' best-performing members, known as All-Stars, count more in shaping each company's rating than do the picks of their poorer-performing peers. That way, investors can intelligently use members' collective wisdom to make better decisions.
The highest-rated REIT is...
Looking at the aggregate data, we see that our community rates Whitestone REIT (AMEX: WSR ) above the rest, and for good reason. As CAPS player foolishstocker wrote in May:

Great management team, rock solid monthly dividend. Lots of growth prospects. Unlike most REITs that selling their assets, since 2008, Whitestone actually buys assets in basement bargain prices. They just bought a commercial center for $3M, at this price it's like getting the center for free, with enough cash in hands to keep on purchasing. The stock is simply hidden from Wall Street. I expect this to be a 10-bagger once it is discovered and volumes will ramp up.​

 

[eytonxav]

Wally,

First let me say, my company is located in one of their properties. I am not too impressed with how they are taking care of this particular building, and while that may not be indicative of their financial performance, I would not put all my reit eggs in such a narrow basket. Also, with a yield like that, I wouldn't be surprised to see its NAV take a big hit should the market head south.

 

[Animorph]

It's a single company REIT stock, not a REIT ETF. Wrong thing if you are looking for a diversified REIT index fund ETF. I use VNQ for that.

 

[wallygator69]

Wow,

Thanks, both great replies. I should have picked up the fact that it was a stock not an ETF....

Thanks as always for the help.

Wally

 

[ejw93]

Wally -

If you want a REIT ETF, most of these are passive and track the index. The biggest ones are RWR and VNQ- essentially the same security (the entire REIT index).

It sounds like you are more interested in equity REITs (which own physical property, as opposed to debt/mortgage REITs, which own and sell mortgage-like products).

The closest pure-play equity REIT ETF is KBWY (exp ratio 0.36 pct). If that expense ratio makes you gag, you could replicate a significant portion of the equity REIT sector on your own by buying individual REITs like VNO, PDM, GOV, MPW and BXP.

 

[wallygator69]

Hi,

Thanks for the ideas. I went with VNQ.

C ya,

Wally