3 REITs Every Investor Should Know About
Which is the better investment: the S&P 500 index or real estate investment trusts (REITs)? Admittedly, it's complicated.
Over longer time frames, REITs have outperformed the S&P 500. For example, over 25 to 52 years, REITs have generated annual returns in the 11% to 12% range, whereas the S&P 500 has delivered annualized returns in the high single digits.
However, over the past decade, the S&P 500 has been the stronger performer. That said, beyond total returns, REITs typically have lower volatility than the broader stock market. Furthermore, certain REIT subgroups have outperformed the broad market.
Source Fool.com
