While stocks have faded back to January levels, real estate investment trusts or REITs are still up for the year. The Vanguard REIT ETF (VNQ) is up over 5% in 2011 while the performance of the S&P 500 has been nearly flat.
A new problem is emerging for cash-strapped income investors. Dividends may be coming in the form of more stock instead of cash.
Each of the top 3 ETF sponsors has at least one domestic REIT fund. International and specialty REIT ETFs are also available.
REITs are coming back from their March lows and a REIT ETF is a low cost way for investors to participate in the trend. Each of the top 3 ETF sponsors has a REIT fund and State Street also has an international REIT ETF.