With the world’s economies getting back on track now, REITs are starting to become safe to invest in again. Some sectors are considered hotter than others right now, such as Offices and Health Care. Other sectors ARE poised for a considerable rebound later in 2021 and early 2022, so in general, REITs are worth investing in again. What are some of the best REITs to buy now or in the future?
Vanguard REIT (VNQ)
The VNQ REIT Fund is one of the biggest overall by a wide margin. It invests in real estate trusts from companies that purchase hotels, office buildings, and similar types of properties. The Vanguard REIT fund has a low expense ratio and offers broad exposure to real estate.
Global X Data Center & Digital Infrastructure Exchange Traded Fund (VPN)
It’s a good idea to have a balanced exposure to big-name data center stocks like Digital Reality (DLR) and Equinix (EQIX), as well as tech infrastructure companies that are showing the potential for high market growth over the next several months. In addition, the ETF offers a combination of generating income from tech sector growth and real estate assets.
US Diversified Real Estate ETF – PPTY
The PPTY is one of the best REITs to buy for those who want diversification. It focuses on sectors like industrial, residential, and office REITs. In addition, it’s a multicap ETF that holds companies of various market caps. This diversification is great for managing volatility.
National Health Investors (NHI)
National health Investors invests in the continuum of independent memory care, assisted living care, nursing homes, specialty hospitals, entrance-fee communities, and various medical office buildings. Its portfolio currently includes 240+ properties in 34 states, which 36 or so operating partners manage.
Starwood Property Trust (STWD)
This REIT is an affiliate of Starwood Capital Group, one of the largest commercial mortgage REITs in the US. The company’s core business involves finding, acquiring, financing, and managing various commercial mortgage loans and other real estate debt investments.
Suppose you’re interested in a real estate “crowdfunding” platform. In that case, this company offers a non-traded REIT that is open to non-accredited investors who don’t have a high investment minimum. It focuses on value-add multi-family investment opportunities across the US markets – ideally, ones that are capable of generating IRRs of 10 – 20% over a 5-year investment cycle.
In short, if you’re starting and don’t have much money to spend, DiversyFund is one of the best REITs to buy.