The nation's housing market still may be struggling, but don't rule out investment opportunities in real estate. Last year, real estate investment trusts, as measured by the FTSE Nareit All REIT Index, gained 7.3%, more than three times the 2.11% return of the S&P 500.
Ranked by one-year total return
After a year in which securities regulators cracked down on nontraded real estate investment trusts, REIT sponsors and the broker-dealers who sell them are focusing on compliance and whether sales of the products to investors are suitable.
A house may be a client's biggest asset, yet many financial advisers ignore this asset when it comes to providing advice.
Mutual funds that invest in real estate investment trusts paid off in a big way for investors last year - as long as they stayed within the United States. The average domestic real estate mutual fund returned more than 6% last year, about 400 basis points more than the S&P 500.
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