There are many options out there for investors looking to scoop up some bargains. And if you’re not sure which stock(s) to buy, you may want to consider looking at some ETFs. Real estate investment trusts (REITs) can often be some of the safest investments because they generate recurring income and because businesses don’t often move or close their offices; they need a stable home.
Now, a weak economy may change that as a result of the coronavirus, but it’s a long-term risk and one that may not be realized as the government looks to help businesses that are struggling.
One ETF that may be appealing for Canadian investors is the BMO Equal Weight REITs Index ETF (TSX:ZRE). It holds some of the top REITs on the TSX and offers investors a good, stable way to earn a dividend and cash in on some low valuations.
The ETF is down more than 30% in 2020 and it’s trading the around the lowest level it’s been at over the past five years.
For investors, it’s an opportunity to get the REIT for an excellent price. The ETF’s averaging a 12-month yield of 5.8% but as REITs continue dropping in value, that percentage is likely to increase.
Its dividend payments are made on a monthly basis and for income investors this can be a great source of regular and recurring cash flow.
The ETF has an average beta of 0.6 meaning that it shouldn’t be as volatile as it has of late, making a bounce back in the price all that more probable. Given its low price and with yields higher than normal, investors can benefit from the best of both worlds by buying this ETF today.
