COVID-19 challenged REIT ETFs

Article Excerpt

The speed of the March 2020 stock market decline, as well its rapid recovery to previous peaks, will rank high in the record books. For instance, the 34% drop for the S&P 500 took only 24 days while the recovery to its previous peak was achieved in 150 days. At the broad market level, the Vanguard Total World Stocks ETF (VT) gained 14.3% for the year. Other gainers included the Vanguard S&P 500 ETF (VOO), up 16.2%, and iShares MSCI Canada Equity ETF (EWC), up 3.2% Emerging markets underperformed developed markets over the past decade, but 2020 was an exception. The iShares Emerging Markets ETF (IEMG) beat the developed markets with a 15.4% gain, the first time it led since 2016. Fixed income investments provided stability and managed to deliver respectable returns for the full year. The Vanguard International Bond ETF (BNDX) gained 3.5% while Canadian bonds—through the iShares Canadian Government Bond ETF (XGB)—returned 5.9%. Real estate investment trusts (REITs) struggled through the year as retailers and offices faced lockdowns—the iShares Global Reit ETF (REET) lost 13.4% in…