Real Estate

Real estate mutual funds and ETFs invest primarily in securities offered by... Real estate mutual funds and ETFs invest primarily in securities offered by public real estate companies, including commercial and corporate properties. Many of these funds have indirect exposure to Real Estate Investment Trusts (REITs). REITs may own both commercial and residential properties. These funds are popular with investors because they offer the potential for both capital appreciation and ongoing income generation. Capital appreciation can occur when a fund’s property rises in value, either due to improvements (i.e. renovations or rezoning) or broader real estate market trends. Income is generated via rents, either from commercial or residential tenants. Real estate mutual funds and ETFs are considered to be an alternative asset class because their returns are usually not directly correlated with the overall stock market. This can be attractive for investors as it may provide an uncorrelated stream of returns for their portfolio. However, the real estate market and broader economy often move roughly together with each other, meaning that these funds may not be a safe haven in times of recession or crisis. Last Updated: 11/04/2024 View more View less

Real estate mutual funds and ETFs invest primarily in securities offered by public real estate companies, including commercial and corporate properties. Many of these funds have indirect exposure to Real Estate Investment Trusts... Real estate mutual funds and ETFs invest primarily in securities offered by public real estate companies, including commercial and corporate properties. Many of these funds have indirect exposure to Real Estate Investment Trusts (REITs). REITs may own both commercial and residential properties. These funds are popular with investors because they offer the potential for both capital appreciation and ongoing income generation. Capital appreciation can occur when a fund’s property rises in value, either due to improvements (i.e. renovations or rezoning) or broader real estate market trends. Income is generated via rents, either from commercial or residential tenants. Real estate mutual funds and ETFs are considered to be an alternative asset class because their returns are usually not directly correlated with the overall stock market. This can be attractive for investors as it may provide an uncorrelated stream of returns for their portfolio. However, the real estate market and broader economy often move roughly together with each other, meaning that these funds may not be a safe haven in times of recession or crisis. Last Updated: 11/04/2024 View more View less