Real Estate Stocks are an important part of the category of Resource Stocks, sometimes called “Hard Asset” Stocks. They were down slightly in the second quarter of 2013. Foreign real estate was down more for the quarter because the U.S. Dollar strengthened against foreign currencies.
- Vanguard REIT ETF (VNQ) was down 1.6% during the second quarter, but still up 9.08% for the past year and still averaging 8.11% for the last 5 years.
- Vanguard Global ex-U.S. Real Estate ETF (VNQI) was down 6.72% during the second quarter, but still averaging 18.29% for the past year.
We still recommend a healthy allocation to publicly traded real estate investment trusts.