Good way to buy REITs

Article Excerpt

ISHARES CDN REIT INDEX FUND $16.61 (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. The fund has an MER of 0.61%, and it currently yields a high 4.9%. The ETF’s top ten holdings are RioCan REIT at 16.4%, H&R REIT (12.8%), Canadian Apartment Properties REIT (10.3%), Allied Properties REIT (8.0%), SmartCentres REIT (7.5%), Canadian REIT (6.8%), Cominar REIT (5.4%), Pure Industrial REIT (5.1%), Granite REIT (5.0%), and Dream Global REIT (4.5%). Beyond those top holdings, the fund’s breakdown includes Artis REIT (4.4%), Boardwalk REIT (3.4%), Dream Office REIT (3.3%), Crombie REIT (2.5%), Northview Apartment REIT (2.4%) and Killam Apartment REIT (2.3%). We like some of the real estate investment trusts this ETF holds, but there are some among the 16 that we don’t currently view as buys. iShares CDN REIT Sector Index Fund is a hold. hold…