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BMO Equal Weight REITs Index ETF (ZRE)
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Real Estate Select Sector SPDR Fund (The) (XLRE)
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iShares Global REIT ETF (REET)
Please recommend a North American and an international ETF which you feel could do well over the next 5 years. What percent of a portfolio would you recommend include real estate for diversification purposes?
Thank you for this excellent service.
Many REIT ETFs have performed decently well up until 2020-2021, however, the recent fallout can largely be attributed to higher rates, making it difficult to fund current and new property acquisitions. With lower rates likely on the horizon, we believe real estate ETFS can perform well in the next five years or more.
Commercial real estate has been tough due to the work-from home trends, but we feel industrial REITs and residential REITs will do well. We prefer North American REITs as we feel those economies are strong and can lead to high real estate demand.
We like the ZRE ETF for Canadian REITs and XLRE for US real estate. International, we like REET. While we cannot personalize responses, and weightings are an individual choice, we think 3% to 5% can represent a healthy weighting.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.