REITs have been hot for a while. But there’s still a corner of the market that has room for growth.
This is the third in a series of five articles looking at the most popular bond alternatives and the safest ways to use them to improve your income prospects when rates are low. Adapted from “Reaching for Yield” in the January/February issue of MONEY magazine.
High demand over the past year for the traditionally lofty yields on real estate investment trusts—the trusts are required to pay out 90% of their profits—has led to spectacular returns. Among the most popular REIT funds, for example, iShares Real Estate Fifty ETF and longtimeMONEY 50 member Cohen & Steers Realty both gained more than 27% in 2014.