You Can Do Better Than VNQ
- ETFs are an excellent option for investors seeking simple, low-cost, and diversified exposure to real estate, particularly for investors that have limited time to dedicate to active real estate research.
- Utilizing a single fund, however, discounts the vast differences of investment characteristics within the real estate sector. There is significantly more variation between REIT sectors than between entire industry groups.
- Perhaps due to “career risk,” many financial advisors invest exclusively in one ETF for real estate exposure.
- Innovation in the real estate ETF space –notably sector-based ETFs - has enabled investors to customize their portfolios toward their more specific needs, objectives, and existing exposures.
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