Beating The Market With Just Five REITs

The author presents a well-diversified six-stock REIT portfolio that has consistently outperformed the Vanguard Real Estate ETF (VNQ) since 2005, with a 14.1% annual return and a lower standard deviation, suggesting that building a REIT portfolio tailored to individual preferences can beat VNQ's performance without elevated risk.

Realty Income's shares have hit a one-year low, but the REIT's strong operating performance, dividend coverage, and diverse real estate portfolio make it an attractive investment with a 5.6% dividend yield.

REITs fell slightly but still outperformed broader markets, with the FTSE Nareit All Equity REITs declining 1.20%, the Dow Jones Equity All REIT Total Return Index down 1.13%, and the S&P 500 decreasing 1.29% on a weekly basis. U.S. REITs also saw a decline in share repurchases in Q2, although the hotel subsector saw a 2.01% increase in performance.