Sunday, August 01, 2004
REITs asset class
Frank Armstrong article about REITs on fee-only-advisor.com.
William J. Bernstein advocates REITs in Intelligent Asset Allocator.
Roger C. Gibson advocates REITs in Asset Allocation.
Vanguard has a REITs Index fund, and there are REITs ETFs on the market.
Tax Implications: Most of the growth of REITs comes from dividents which are taxed as regular income (i.e., they are not qualified corporate dividents). Further, despite the brevity of the historical period over which REITs performance data is available, they are very much on par with stocks EV and variance wise, while having quite low correlation with S&P500 (they have higher correlation with small cap stocks).
