Two High-Yield REITs For Conservative Investors
Interest rates have spiked higher over the last month. The 10-year Treasury yield increased by 12%, moving from 4.7% to 5.25%. When rates increase, investors sell off stocks they think will be hurt by higher rates. Real estate investment trust (REIT) share prices are one of the most affected asset classes.
The Vanguard Real Estate ETF (VNQ), with $42 billion in assets, is the best-known REIT ETF. This fund is down over 10% since late August. Rising interest rates are the sole reason for the decline.
Investors holding high-yield REITs may see price declines and sell out of fear that share prices will keep falling. I talk to my subscribers about a different way to view falling prices.
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Category: Dividend Stocks





