REET: Structurally Endangered By The Fed's Rate Mandate

Mar. 10, 2023 6:34 AM ETiShares Global REIT ETF (REET)REET
Valkyrie Trading Society
Investing Group Leader

Summary

  • REET, like all of the real estate asset class, is going to be struggling with rates.
  • Any upside surprise to rates is a downside effect on the price, and the issue is there is every reason to expect upside surprises in rates given the current environment.
  • The upside with REET is that expense ratios are very low. Still, we think that investors are smart enough to choose just one REIT, which are already portfolios.
  • Adding on the 0.14% expense on top of custody fees and whatever else you have in your brokerage seems unnecessary when you need to tighten belts.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

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AJ_Watt

The iShares Global REIT ETF (NYSEARCA:REET) is exposed pretty broadly to various REIT categories. The big ones are retail and specialized REITs, and there's not much office REIT exposure. This is one of the more diversified ETFs out there, and the low

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