The sheer number of investment options for the average investor is staggering. Trying to fully diversify a simple retirement or savings portfolio can seem like a simple task, until one tries.
Adding real estate exposure to one’s portfolio, for example, can be difficult to do, given most Real Estate Investment Trusts (REITs) out there are very specific in nature.
For investors looking to add broad, diversified real estate exposure to their portfolio, the iShares S&P/TSX Capped REIT Index Fund (TSX:XRE) is a great way to go.
This RETI ETF tracks the broad REIT market, essentially spreading one’s investment over the entire North American and Global real estate sector, taking away the need for investors to pick and choose which sub-sectors of the real estate market to focus on.
I believe in the years to come, more ETF derivatives will become standard (i.e. ETFs built with a portfolio of various ETFs).
Given the broad spectrum of REIT options out there, having an ultra-diversified approach to this important portfolio piece can provide retirees, and young investors alike, with peace of mind over long periods of time.
We’re now in the midst of an economic reset around the world, so expect some volatility. But if you’re an investor in it for the long haul, picking up shares of an ETF like this at these levels could turn out to be a great long-term success.
Invest wisely, my friends.
