Real estate stocks had a spectacular 2021. The Schwab US REIT ETF soared by over 46% from its lowest level in January to the highest level in 2022. As a result, most REITs are overvalued and as rates rise, it is unclear whether the sector will continue doing well. So, here are some of the best REIT ETFs that could do well in 2022.
Schwab US REIT ETF
The Schwab US REIT ETF (NYSE: SCHH) is a leading REIT ETF that has more than $6 billion in assets and a dividend yield of about 1.92%. The fund tracks several indices that track the biggest REITs in the United States.
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Some of the biggest stocks in the SCHH ETF are Prologis, American Tower, Crown Castle, Public Storage, and Equinix among others. The fund has an expense ratio of about 0.08%, making it a relatively affordable ETF.
SCHH is a good fund because of its low expense ratio and the fact that it has the biggest REITs in the US. Also, it has had a strong record of generating good returns to investors. For example, it has risen by more than 155% since it was created in the past decade. Further, its asset inflows have been better than its peers.
iShares Global REIT
The iShares Global REIT (NYSE: REET) is a leading REIT that gives you access to REITs from around the world. The fund has more than $3.4 billion in assets and an expense ratio of 0.14%. It is a bit expensive than SCHH because of its global nature.
REET has over 390 stocks from around the world. Some of the top names in the fund are Avalanbay Communities, Equity Residential REIT, Regency Centers, and Kimco Realty. Most of the REITs in the fund are industrial, retail, and residential.
The benefit of this REIT is the fact that it gives you exposure to the property market from around the world.
Global X SuperDividend ETF
The Global X SuperDividend ETF (NYSE: SRET) is a relatively small REIT ETF that provides a yield of about 6%. The fund has net assets worth over $950 million and is known for tracking the biggest yielding REITs from around the world. As a result, it has an expense ratio of about 0.58%, making it a bit expensive.
Some of the biggest REITs in the fund are NOS SGPS, Transm Alian-Uni, Imperial Brands, Williams Cos, and Magnit.
The SRET Fund is a high-risk high-reward fund especially in a period of high interest rates. Its main benefit is that it has a superior yield than most comparable funds and that its components are global companies.
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Source: https://invezz.com/news/2022/02/11/diversify-your-portfolio-with-these-diverse-reit-etfs-in-2022/