Now might be a good time to pick up some real estate REITs
— -- Q: Are medical real estate investment trusts a good idea?
A: Real estate investment trusts (REITs) are an interesting way for investors to get a piece of real estate without the daily headaches.
Most REITs own commercial property like apartment buildings, strip malls and office buildings. The REIT structure allows investors to get a piece of these properties without the hassles of buying, managing buildings and collecting rent.
But investors with some major patience need to strongly consider keeping REITs in their portfolios. First, they currently sport an average yield around 9.3%, which is an attractive income stream to help smooth out the bumps in the stock values. And academic studies have shown REITs tend to zig when stocks zag, adding some leveling to your portfolio during unsteady times.
You can get the current yield for REITs here.
But rather than trying to choose which kind of REIT to invest in, such as medical real estate, why not buy a basket. The Vanguard REIT ETF mentioned above will give you exposure to many kinds of REITs, spreading your investment across different types of commercial real estate.
Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com. Click here to see previous Ask Matt columns. Follow Matt on Twitter at: twitter.com/mattkrantz
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