Best REIT Investments

June 30, 2020

Investing in real estate can be a fantastic way to generate a reliable stream of revenue to add to your total household income. But did you know that there are multiple types of real estate investments you can make? The right type of real estate investment for you will depend on your level of investment and the amount of time you want to put into the real estate you purchase or maintain.

If you’re still searching for the best real estate investments, use our guide to decide which type of investment best suits your lifestyle and needs.

You can also invest in real estate by purchasing real estate stocks and ETFs. Most real estate stocks operate as real estate investment trusts (REITs). A REIT is a company that owns and manages real estate or real estate debt. Most REITs make strategic commercial or residential real estate investments and then rent them out to tenants. The rent received is then distributed back to investors in the form of dividends. By law, a REIT must distribute at least 90% of its taxable income back to shareholders.

Some REITs and REIT ETFs investors are currently eyeing for 2020 include:

Vanguard Real Estate ETF (NYSE: VNQ): The Vanguard Real Estate ETF is a nondiversified REIT that includes 183 real estate stocks. The majority of the REITs included in the VNQ portfolio are industrial and specialized REITs.
iShares Residential Real Estate Capped ETF (NYSE: REZ): The iShares Residential Real Estate Capped ETF invests its assets in residential, healthcare and self-storage entities. The fund includes 43 holdings with the largest percentage of assets held in Public Storage, AvalonBay Communities and Equity Residential.
Global Medical REIT, Inc. (NYSE: GMRE): If you prefer to invest directly in REIT stocks instead of ETFs, consider purchasing shares of Global Medical REIT. As the name suggests, the medical-focused REIT owns and operates healthcare facilities across the United States.