One common way to diversify stock and bond portfolios is through real estate. Although Real Estate Investment Trusts (REITs) are a sub-category of equities, REITs frequently exhibit low correlation to stocks from the traditional S&P sectors.
However, Standard & Poor's said on November 11 that it would break out equity REITs into their own sector, apart from financials, where they have previously been housed. S&P expects this new classification to be implemented after the market close on August 31, 2016.
S&P said it is building in a long lead time to allow financial services firms ample opportunity to change databases.
The new classification would include equity REITs. Mortgage REITs are slated to remain in the financial sector in their own newly created sub-sector.
Top-Performing Real-Estate Mutual Fund: Baron Real Estate Institutional Class
One top-performing real-estate mutual fund over the past year is the Baron Real Estate Institutional Class BREIX. It has advanced 17.16 percent over the past year. The majority of holdings include domestic stocks, with a small amount in non-U.S. stocks.
Top holdings include:
- Starwood Hotels & Resorts Worldwide Inc
- Brookdale Senior Living, Inc.
- Hyatt Hotels Corporation
- CBRE Group Inc
- Wyndham Worldwide Corporation
- The Home Depot, Inc.
- Jones Lang LaSalle Inc
- Capital Senior Living Corporation
- Las Vegas Sands Corp.
Strong One-Year Performance Real-Estate Fund: Fidelity Real Estate Investment Portfolio
Another real-estate fund with a good one-year performance is the Fidelity Real Estate Investment Portfolio FRESX. Its one-year gain is 13.48 percent. This is another fund that primarily invests in a number of equities that are structured as REITs.
Top holdings are:
- Simon Property Group Inc
- Public Storage
- Ventas, Inc.
- Host Hotels and Resorts Inc
- Equity Residential
- HCP, Inc.
- Boston Properties, Inc.
- Digital Realty Trust, Inc.
- Prologis Inc
- DDR Corp
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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