Q: I am currently overweight energy and under in real estate. Which of the above three should I trim or sell completely? It seems ENB is as much utility as Energy and it's rather flat, for me. Love all the Energy dividends. The sole Realty I have is DIR.UN which I'm happy with. Which Canadian REIT's would you suggest and would I be better with a US or European REIT? If so, with one(s)? Many thanks
5i Research Answer:
Canadian REIT yields are generally much higher than in the US. We do not cover any European REITs. We think KMP.UN, GRT.UN are interesting, and one could always buy the ETF ZRE for diversified exposure (indicated yield 5.24%). PSA can be suggested in the US. On energy, we like all the stocks, and would be fine trimming some of each to reduce exposure. ENB is a hybrid and thus safer than the others overall.