Six exchange-traded funds (ETFs) that track the major indexes

Six exchange-traded funds (ETFs) that track the major indexes

More and more, exchange-traded funds (ETFs) are finding their way into the portfolios of investors.
That’s because, unlike many other financial innovations, they don’t load you up with heavy management fees, or tie you down with high redemption charges if you decide to get out of them… Read More

Q: Pat, I am interested in adding to my REIT holdings and would like to know what your opinion is regarding adding REI.UN and CHP.UN to my TFSA account as opposed to placing them in a cash or registered account.

A: We see both RioCan REIT, $28.58, symbol REI.UN on Toronto, and Choice Properties REIT, $13.33, symbol CHP.UN on Toronto, as buys.

Which account to hold REITs in depends on an individual’s personal tax situation and what else they hold in their overall portfolio. However, here’s… Read More

Q: Hello, Pat and company. I would like to know your opinion and recommendation on Summit Industrial Income REIT on the TSX. Thanks for all the great advice! Regards.

A: Summit Industrial Income REIT, $11.80, symbol SMU.UN on Toronto (Units outstanding: 96.3 million; Market cap: $1.2 billion; www.summitiireit.com), is an open-ended trust (see below) that owns light industrial properties across Canada.

As of December 31, 2018, the trust owned 108 buildings, making up 13.3 million… Read More

How REITs let you defer taxes

Most REITs, or real estate investment trusts, distribute almost all of their net income to their unitholders. As a result, they pay little or no income tax, since most of their earnings flow through to investors.
Unitholders are responsible for paying tax on the entire amount… Read More

These ETFs offer top-quality REITs

Traditionally, REITs are said to suffer when interest rates rise. That’s in part because their units, which typically offer high yields, compete with fixed-income instruments for investor interest. However, higher interest rates are usually accompanied by increased economic activity and growth. That higher growth is… Read More

Here are five key ways to value REITs

Real estate investment trusts (“REITs”) have different valuation measures than, say, industrial companies or banks. Here we look at five popular methods to compare the valuations of REITs.
The net asset value (NAV) approach
Most REITs regularly value their real estate portfolios, either internally or by appointing… Read More

ETF taps Canadian REITs

ISHARES CDN REIT INDEX ETF $18.37 (Toronto symbol XRE; buy or sell through brokers; ca.ishares.com) holds all 16 Canadian real estate investment trusts in the S&P/TSX REIT Index. This includes retail, residential, office and industrial REITs.
The fund has an MER of 0.61%, and it currently yields a high… Read More