The REIT Time to Buy?

[fjammer22]

Thanks fuego. Yeah it seems like the VNQ is better-suited for me. It has a lower expense ratio, lower buy-in costs (with Scottrade), and it's more liquid. Anything wrong with my thinking?

 

[FUEGO]

Thanks fuego. Yeah it seems like the VNQ is better-suited for me. It has a lower expense ratio, lower buy-in costs (with Scottrade), and it's more liquid. Anything wrong with my thinking?

ETF's work better if you are making fewer, larger purchases. For example, paying $10 in commissions = 1% on a $1000 purchase, but only 0.1% on a $10,000 purchase. If you are buying once a month for under $1000, the mutual fund version of the REIT index may be cheaper/better overall. Or save up some and invest quarterly or annually to save on commissions.

 

[ziggy29]

Thanks fuego. Yeah it seems like the VNQ is better-suited for me. It has a lower expense ratio, lower buy-in costs (with Scottrade), and it's more liquid. Anything wrong with my thinking?

ETFs may be better if you are buying with one lump sum. Those who are going to be dollar cost averaging in and buying on a regular and recurring basis are probably better off with a traditional open-end mutual fund.

 

[Midpack]

Right now, anyone invested in REITs needs some Dramamine because of the violent rollercoaster ride they've been on. Ye gods, have these things been volatile...

It's all relative. I own VGSIX, but I also own VGENX (Energy) & a bigger chunk of VEMAX (Emer Mkts) --- take a look it at them and you'll consider VGSIX relatively tame. But VGENX & VEMAX/VEIEX are both up overall far more than any typical US, Intl or Global equity funds despite their volatility, and I sleep perfectly at night through it all. YMMV...

 

[BUM]

I'm in the black on VGSIX... only because I bought it last week.

Bailed on it 2 years ago.