As the Vanguard Real Estate ETF (ARCA:VNQ) is down roughly 31% year-to-date, real estate investment trusts are being beaten down as the sector continues to decline.
From 1992 to 2017, real estate investment trusts (REITs) have outperformed all other major asset classes with an annualized total return of 10.8%, per S&P Global. With interest rates rising, there are ongoing concerns about REITs underperforming.
Real Estate Investment Trust REITs have emerged as an efficient diversification strategy to hedge against inflation, offering high dividend yields, strong long-term returns, and liquidity.