REITs Were Up More Than 40% in 2021 -- Will They Repeat in 2022?
When investors look back on 2021, one sector that will stand out is real estate investment trusts (REITs). As a group, REITs rose an impressive 40%, compared with a roughly 27% gain for the Standard & Poor's 500 Index. That's pretty amazing outperformance for a sector of the market that is specifically designed to pay dividends, not grow at a fast and furious pace.
But there are some things to understand here that help explain the huge gains and why investors shouldn't be holding their breath for a repeat performance in 2022.
When a market sector beats the S&P 500 Index, it's hard to put too big a negative spin on things. Simply put, as a whole, REITs had a very good year. But there's a lot of variability behind the REIT moniker that needs to be examined to understand the performance fireworks that shined so bright in 2021.
Source Fool.com
