It is hard to argue with the diversification you get there, and the expense ratio is nice and low, but I agree, it is very hard to get excited about a yield of just over 3 percent for your REIT holdings. That sort of yield is available with consumer staples without the interest rate risk. Of course it depends a lot on your particular circumstances (type of account, tax implications, balance of portfolio), but (like you) I would be very tempted to choose a handful of top-flight REITs with better yields than that instead.
I hold O and HCP, so agree with those choices. The others on my watch list as high-quality REITs are: HCN, HTA, NNN, OHI, VTR, and WPC. I am absolutely sure that other folks have more to add to that list!
I hold O and HCP, so agree with those choices. The others on my watch list as high-quality REITs are: HCN, HTA, NNN, OHI, VTR, and WPC. I am absolutely sure that other folks have more to add to that list!