These ETFs offer top-quality REITs

Article Excerpt

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 in turn good for REITs, pushing up occupancy levels and rents. Meanwhile, prices of REITs have moved up strongly since the start of this year. That’s because growth remains steady—and at the same time, the U.S. Fed has said it will pull back on interest rate rises this year. Here are two ETFs focused on REITs: One invests in the U.S.; the other, in Canada. (See the REIT supplement on pg. 49 for more information.) FIRST ASSET CANADIAN REIT ETF $17.89 (Toronto symbol RIT; TSINetwork ETF Rating: Conservative; Market cap: $420.8 million) invests primarily in Canadian real estate companies. The ETF is actively managed by First Asset, a subsidiary of CI Investments. It focuses on Canadian REITs, real estate operating companies…

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