iShares U.S. Real Estate ETF Covers The REIT Universe

iShares U.S. Real Estate ETF Covers The REIT Universe

A Seeking Alpha Contribution

Summary

  • IYR covers the entire universe of REITs, which includes mortgage and timber REITs.
  • A broader portfolio makes for slightly less volatility and a higher yield versus RWR.
  • Investors can achieve a higher yield and lower cost by using two or more ETFs.

There are several domestic REIT ETFs competing for investor dollars. Four of these funds have ten-year histories. They are iShares U.S. Real Estate ETF (NYSEARCA:IYR), iShares Cohen & Steers REIT ETF (NYSEARCA:ICF), Vanguard REIT Index ETF (NYSEARCA:VNQ) and SPDR Dow Jones REIT ETF (NYSEARCA:RWR). Three others have shorter histories: First Trust S&P REIT Index ETF (NYSEARCA:FRI), Schwab U.S. REIT ETF (NYSEARCA:SCHH) and PowerShares KBW Premium Yield Equity REIT Portfolio ETF (NYSEARCA:KBWY).

Two of the oldest indexes are IYR and RWR. We’ll compare IYR to RWR in order to show where IYR differs from other REIT ETFs…. To Continue Reading Please, Click Here.

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