Published on 1 Dec 2023 on InvestorPlace via Yahoo Finance
This has been a rough year for the real estate investment trusts. While the S&P 500 index is showing returns of nearly 20% in 2023, many of the top REIT exchange-traded funds are barely holding their own. There are plenty of REITs to avoid these days.
REITs own and manage income-generating real estate properties, everything from apartment buildings to shopping malls and warehouses. REITs were a good portfolio diversification tool, especially during low interest rate periods.
However, today’s interest rates are high at 7.5% for the average 30-year mortgage, meaning there are an increasing number of REITs to avoid.