Vanguard REIT ETF (VNQ)

I think we have pretty much found the bottom of the reit market. THere has been a nice rebound since March, but it it still at 50% of 2007 peak. Additionally, at $40/share there is a current dividend of 4%

Banks are in much better shape and REITS will benefit as a result when the commercial real estate market turns.

Real Estate has reached its bottom or is close at least this ETF will lag for about a year but afterwards the potential rewards are huge.

Fundamentals in REITS tend to lag a recovery in the economy and there is considerable uncertainty in terms of the total capacity in the credit markets relative to upcoming maturities.

Short term I expect VNQ to underperform, as the economy continues through its deflationary environment, commercial real estate (re)financing is limited, and retail stores close. Apartment rentals should retain some support via displaced homeowners.

VNQ should shine when inflation returns, but we won't be there for at least a year.

Real estate will recover.

REITs should be coming back soon, but I do not want to bet on just one of them. This is a good 'basket' play until you see one separate themselves from the rest of the others.

The dividend is over 12.5 % and over the long run the NAV is going to keep up with inflaction.

I actually believe that this is headed up over five years. The nominal bottom on real estate is probably in now that the Federal Reserve has broken out the big guns. Real values will probably decline for some time -- essentially, I'm predicting high inflation, with a modest increase in RE prices that lags inflation somewhat. This scenario will dramatically mitigate many of the issues facing REITs and driving many of them to the brink of bankruptcy today. That said, I think it would be difficult for an REIT ETF to outperform the S&P 500 in the upcoming recovery, which is what CAPS is tracking -- not a mere increase. Disclosure:I own a very small portion of this in my IRA, for some real estate exposure, just in case I'm wrong.

Obviously Real Estate has been the biggest loser of the recession and there is a good chance it will fall even further. However, my personal invest time horizon is greater than 30 years. The dividend yield on this ETF is currently 16.7%. Even if they cut the dividend by 70% in the next year it will still be an attractive yield. Reinvesting dividends over the very long term will help to reduce my average cost basis, which is already low as I only started buying into this ETF after the crash. Real Estate is an excellent inflation hedge and this ETF automatically provides a high level of real estate diversification with a low expense ratio. As of a few weeks ago, I hold a large quantity of this ETF in my tax-sheltered retirement accounts where I pay no taxes on the dividends.

Collect 11% a year while waiting for this puppy to pop.
Wait it out and be rewarded. Now if they cut the dividend, things could be different.

In the near future this ETF will get beaten down like a dog along with just about anything to do with real estate.

What some people overlook in REIT though is many of the properties managed and/or owned by REIT are locked into contracts.

Look for most REIT to stay steady or lose very little over the next year and then start to perform again toward the end of next summer.

Also as with most ETF's by owning several companys you are automaticly diversified so if one fails your portfolio doesnt go belly up or take a large hit.

Real Estate will pull out of this tailspin and again resume it's rightful place in a portfolio

This is going up.

This ETF has cured my addiction to REIT's. I'm buying into it until the real estate market starts turning back up.

Real Estate is down. Will it stay at the bottom for 1 month, 1-year, 2 years... I don't know. With a long perspective now is a good time to start thinking about buying.

I hate to be someone who calls the bottom, but im feeling that the housing markets and... well... at the bottom, and this is the wreckage thats "left behind"... only 2 of the top 10 are residential, and they are apartments, for the people that lost there homes...

I think i actually gonna do more than speculate on this one, and buy this to diversify my portfolio a little bit...

"I think for the short run, year or so its gonna match the market."

famous last words, fingers crossed.

Expense ratio 0.12%
97 stocks

Bear market, esp. for RE and mortgage related.