What you need to know about the best real estate investment trusts (REITs)
REITs are property trusts which invest in different types of property, generating income and capital appreciation. Investors and traders can access REIT stocks directly via companies such as British Land, or via a dedicated exchange traded fund (ETF) which tracks an index performance.
UK investors are spoiled for choice when it comes to choosing a REIT. There are dozens of options offering access to niche markets such as social housing, as well as commercial, industrial and residential properties, and overseas real estate. The best REIT for you will depend upon your individual risk profile and the type of market you want to access. For instance, a trader may want to invest in a REIT ETF which has a high degree of liquidity; whereas a long-term investor may prefer to take a long position in an up-and-coming REIT stock.
The best REITs offer instant access to the ever-active real estate market, without any need for a mortgage or a deposit. Simply choose your REIT or REIT ETF, and start investing or trading.
It is important to ensure that you choose the right REIT for your individual needs. For some investors, that might mean choosing a UK REIT, which invests in UK real estate. Others might seek out REITs which can meet certain environmental, social and corporate governance (ESG) requirements; while others may prefer to invest in overseas property via a Japan-focused REIT, a US-based REIT, or even a global REIT ETF.
ETFs offer exposure to multiple stocks, shares and funds with one investment, so that you can ensure that you have a highly diversified portfolio, rather than relying on the performance of one or two REIT stocks.
You can trade or invest in REIT shares and REIT ETFs with us. Open an account to get started.
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