financegal27
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Not necessarily. The underlying investments in REIT funds are companies that manage a variety of different types of properties. They can include Mall Operators like Simon, hospital managers, rental property managers, etc. They don't necessarily react in the same manner as pure real estate properties. For example a rental property manager may perform very well when housing tanks, because more people are likely to rent, and the demand can increase rental prices, mall operators may struggle in an economic slowdown when they have difficulty finding new tenents. I think you get the point. They do tend to outperform when real estate is hot for a variety of reasons, including investor inflows due to an interest in having real estate exposure, but they really aren't as correlated to real estate prices as you would think.
And Daniel S. is wrong they are not just closed end funds or ETFs you can absolutely buy a REIT Mutual Fund, several companies have them including Fidelity, ING, AIM, PIMCO, AllianceBernstien, JPMorgan, and Goldman Sachs, T. Rowe Price, Oppenheimer, etc... |
Daniel S
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for the record they are closed end funds or ETF's.
yes, you see an REIT owns land, therefore if the price of their land increases what they hold (the land) becomes more valuable. If the price of the land drops than the land they hold becomes less valuable. the stock price will move accordingly. |
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