REITs have appeal despite higher rates

Article Excerpt

Most real estate stocks and REITs were well on their way to recovering their pre-COVID highs when interest rates began to rise. But those higher rates worried investors and dramatically slowed that recovery. Still, for most real-estate classes (except for office buildings), occupancies have risen back to pre-pandemic levels, and rents are rising. And while rising interest rates could still slow economic recovery, top real estate firms and REITs have already locked in historically low mortage rates. Here are two ETFs that provide investors with access to Canadian and U.S. real estate and REITs. In the supplement on page 89, we offer more information on the outlook for real estate. CI CANADIAN REIT ETF $18.07 (Toronto symbol RIT; TSINetwork ETF Rating: Aggressive; Market cap: $634.8 million) invests in Canadian REITs, real estate operating companies, and providers of real estate services. Up to 30% of the ETF’s assets can also be invested in non-Canadian real estate companies. The largest component of the ETF is Residential REITs, followed…

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