What do you think about REIT ETFs? What's your favorite? Thank you for all your support! Your "likes" help me a lot to grow this channel :) Let me know if I can help with anything.
Great video as always Jussi. I still prefer REIT ETFs because of the reliability of outcomes through diversity and I don't have to do any thinking/homework even if that means lower returns, I will still reach my investing goals. For my personal situation, I just dollar cost average in the ETF and live my life with the extra time. I consider it a convenience fee. I will say that all of your points are fantastic and I think in your situation you will do well.
Like you, I avoid them. I'm a retired guy with finance background. I'd rather buy into REITs directly after doing homework on financials. I am not saying I am smarter than RETI ETFs/market but I will assume risk vs fees. Your reviews are thought provoking/educational and enjoyable. Thank you! Best to you and yours!
I agree. After seeing several of your videos, I agree with your assertion that you are better at investing in REITs than the ETF portfolio mgrs. Maybe you should produce a REIT.
great video and interessting topic as usual ! You mentioned that you might make a video about your selection process. I would be very interested :) Also the topic of valuations/ FFo ratios would be exciting, why you think that some reits are more expensive than others, specific examples, if you think the valuations are justified or not
Excellent argument against investing in a REIT ETF, Jussi. I really appreciate your thought-provoking investment ideas video presentations, especially those on REITs.
Jussie is a world class REIT investor for sure, but I’ll kindly disagree about avoiding REIT ETFs. VNQ the largest REIT is cap weighted so you’ll always have a majority of whatever the best REITs are at the time. You never have to worry about incurring huge losses from mismanagement or unforeseen circumstances to that particular REIT sector such as we have seen from Offices. You never have to worry about the timing of buying/selling your individual REIT and what capital gains will be incurred. For instance a phenomenal REIT with excellent management like ARE was being written about/promoted on Seeking Alpha when it was well over $200. Now it’s at $109 (nearly half). A low cost/well diversified REIT such as VNQ will always avoid that torrential loss, even on a fantastic company. Anyone can make the case that at these levels, they are a buy and I agree some certainly are, but I’ll sleep well at night DCA’ing into my VNQ. Just getting back to the high is a 30%+ gain and you’ll never have to worry about checking the stock price or worrying if management fumbled the ball. Good luck on your investments everyone.
@@NickHazletonMusic No, that's typically not the case. ETFs, especially passively managed funds like VNQ, will typically retain their holdings for a set period of time regardless of individual holding performance. The reconstitution time varies by ETF. Some do it quarterly, semi-annually, annually, never or whenever they feel like it.
You are right that it can make sense for some investors. This was really my thoughts based on my situation. I explain why I personally won't buy REIT ETFs. Thank you for sharing!
@@NickHazletonMusic If a REIT tanks they do not swap it out, but it becomes a smaller and smaller holding in the ETF. For example the least performing REITs become the smallest percentage holdings in the ETF to almost a negligible size just fractions of a percent. Then the best performing REITs become a larger percentage of the ETF, so a majority of the ETF’s holdings are always the best ones and you never have to worry about rebalancing, selling, buying or chasing the best performers because you already have a large stake in the best ones. Think of it like this; “The companies with the largest market capitalizations, or the greatest values, will have the highest weights in the index”.
Hello my friend. I'm from Brazil and a huge investor in the USA. Could you help me with a tip, I always follow your channel. Thanks for the teachings. The CCI REIT has been dropping in price a lot and is in great debt. I have it in my wallet. Has he lost ground or is it a buying opportunity? Thanks a lot for the help. Success.
CCI has a strong BBB+ balance sheet. I am not worried about its debt. Note that I have a few videos on it. I bought more shares yesterday and posted an update at High Yield Landlord. Feel free to join us for a 2-week free trial to access all our Top Picks: seekingalpha.com/checkout?service_id=mp_1268
I only invest in REIT ETFs, because they are much more tax efficient in my country. Dividends from US REITs are taxed up to 42.5% while REIT ETFs are only taxed up to 27.5%. Also, many automatically reinvesting REIT ETFs share a minor tax benefit, where most of the dividend tax can be delayed until the ETF is sold.
I am in a similar situation. So would you say that the tax advantages of REIT ETFs outweigh any gains you could get with an individual REIT portfolio, similar to Jussi's? That's my concern
I think that it is a mistake to make investments based on taxes. it should be one small factor among many others. The bulk of REIT returns is expected to come from appreciation in the coming years as they recover. Dividend income is only one component
seriously ... so he could be just like everyone else! had he worn a tuxedo, it wouldn't make me believe him any more. In fact, quite likely just the opposite. It's a new world out there. Sink or swim. The choice is yours. Perhaps this is better. www.youtube.com/@CanadianTShirt
Great video Jussi, I definitely don't like that VNQ prioritizes the larger reits like PLD that are priced at a premium. What are your thoughts on Safehold? I want to start a position but am having troubling understanding why their share price has plummeted so much since 2021 despite improving their portfolio, was it really just higher interest rates?
In other words, this man is basically saying, just get an ETF. This guy has three different degrees and knows the field like the back of his hand. Plus he has credibility online. I’m very confident this guy is going to seek alpha and find it and get his 9% dividends plus the upside, but the rest of us are stuck with ETFs and 4.4 dividends. Unless you think you can balance like this guy……impossible.
Interesting information for us to consider, but sadly not practical at all for most people who don't have the education and in-depth knowledge to do things as you suggest. For some, I'm sure this video will be very helpful though.
Hello Mr. Askola, for you as a real estate investor, it makes sense not to invest in etf. You take the time to research and have the ressorces and knowledge. In my case, I don't have the investment budget to invest so many reits parallel. I started shortly. So I invest in Reit etf because of the low prises overall at the moment I cannot make so much wrong with that and I have all the typical ones in the portfolio. But thanks to your tipps I know now what to look for and I can take your tipps into consideration for some direkt investments.
@@askjussi Dear Jussi, listen to a nearly experienced investor with advanced physics background, whats more, Uralic native tongue, and become more efficient by loosing the shirt, too :-)
What do you think about REIT ETFs? What's your favorite?
Thank you for all your support! Your "likes" help me a lot to grow this channel :)
Let me know if I can help with anything.
Great video as always Jussi. I still prefer REIT ETFs because of the reliability of outcomes through diversity and I don't have to do any thinking/homework even if that means lower returns, I will still reach my investing goals. For my personal situation, I just dollar cost average in the ETF and live my life with the extra time. I consider it a convenience fee. I will say that all of your points are fantastic and I think in your situation you will do well.
@@muffemod I think that ETFs make a lot of sense for many investors. Pros and cons
Like you, I avoid them.
I'm a retired guy with finance background. I'd rather buy into REITs directly after doing homework on financials. I am not saying I am smarter than RETI ETFs/market but I will assume risk vs fees. Your reviews are thought provoking/educational and enjoyable. Thank you! Best to you and yours!
@@MIA_DaDe 🙌
@@MIA_DaDe Thanks for sharing!
I like how you have a comprehensive summary of your videos in the description! It helps to keep info from going in one ear and out the other.
Thanks a lot for your support!
Never hear investors speak like Jussi Askola, your due dilligence before taking risk is balanced. You're an inspiration to us
Thanks a lot for your kind comment. I appreciate it!
Extremely helpful video, thank you! I'm looking forward to your video telling us about your screening process. 👍🏼
I will work on it, thank you!
I agree. After seeing several of your videos, I agree with your assertion that you are better at investing in REITs than the ETF portfolio mgrs. Maybe you should produce a REIT.
Thanks!
Another great video, Jussi. Thank you!
Thank you!! What are you buying today?
Details?
great video and interessting topic as usual ! You mentioned that you might make a video about your selection process. I would be very interested :) Also the topic of valuations/ FFo ratios would be exciting, why you think that some reits are more expensive than others, specific examples, if you think the valuations are justified or not
Sounds good, thank you for the suggestion!
Excellent argument against investing in a REIT ETF, Jussi. I really appreciate your thought-provoking investment ideas video presentations, especially those on REITs.
Thank you for all your support!
Jussie is a world class REIT investor for sure, but I’ll kindly disagree about avoiding REIT ETFs. VNQ the largest REIT is cap weighted so you’ll always have a majority of whatever the best REITs are at the time. You never have to worry about incurring huge losses from mismanagement or unforeseen circumstances to that particular REIT sector such as we have seen from Offices. You never have to worry about the timing of buying/selling your individual REIT and what capital gains will be incurred. For instance a phenomenal REIT with excellent management like ARE was being written about/promoted on Seeking Alpha when it was well over $200. Now it’s at $109 (nearly half). A low cost/well diversified REIT such as VNQ will always avoid that torrential loss, even on a fantastic company. Anyone can make the case that at these levels, they are a buy and I agree some certainly are, but I’ll sleep well at night DCA’ing into my VNQ. Just getting back to the high is a 30%+ gain and you’ll never have to worry about checking the stock price or worrying if management fumbled the ball. Good luck on your investments everyone.
Thanks for the insight. I like your approach. So if a REIT tanks in the fund, they swap it out for a different one ?
@@NickHazletonMusic No, that's typically not the case. ETFs, especially passively managed funds like VNQ, will typically retain their holdings for a set period of time regardless of individual holding performance. The reconstitution time varies by ETF. Some do it quarterly, semi-annually, annually, never or whenever they feel like it.
@@binarybrian thank you !
You are right that it can make sense for some investors. This was really my thoughts based on my situation. I explain why I personally won't buy REIT ETFs. Thank you for sharing!
@@NickHazletonMusic If a REIT tanks they do not swap it out, but it becomes a smaller and smaller holding in the ETF. For example the least performing REITs become the smallest percentage holdings in the ETF to almost a negligible size just fractions of a percent. Then the best performing REITs become a larger percentage of the ETF, so a majority of the ETF’s holdings are always the best ones and you never have to worry about rebalancing, selling, buying or chasing the best performers because you already have a large stake in the best ones. Think of it like this; “The companies with the largest market capitalizations, or the greatest values, will have the highest weights in the index”.
I like to evaluate a REIT’s properties prior to purchase. I don’t know if I am up to looking over the properties held by a REIT fund.
VNQ owns about 150 REITs so that would require a lot of work!
Hello my friend. I'm from Brazil and a huge investor in the USA. Could you help me with a tip, I always follow your channel. Thanks for the teachings. The CCI REIT has been dropping in price a lot and is in great debt. I have it in my wallet. Has he lost ground or is it a buying opportunity? Thanks a lot for the help. Success.
CCI has a strong BBB+ balance sheet. I am not worried about its debt. Note that I have a few videos on it. I bought more shares yesterday and posted an update at High Yield Landlord. Feel free to join us for a 2-week free trial to access all our Top Picks: seekingalpha.com/checkout?service_id=mp_1268
Where do you get your caprates from when calcing NAV?
They are my own estimates
What do you think of RIET (Hoya capital High dividend yield Etf)
It is good if you like mREITs
Thanks
This video made me have major respect for your opinion. REIT etf’s usually have very mediocre performance.
I appreciate your interest. Thanks! I think that ETFs make sense for many investors, but not for all of them.
I only invest in REIT ETFs, because they are much more tax efficient in my country. Dividends from US REITs are taxed up to 42.5% while REIT ETFs are only taxed up to 27.5%. Also, many automatically reinvesting REIT ETFs share a minor tax benefit, where most of the dividend tax can be delayed until the ETF is sold.
I am in a similar situation. So would you say that the tax advantages of REIT ETFs outweigh any gains you could get with an individual REIT portfolio, similar to Jussi's? That's my concern
I think that it is a mistake to make investments based on taxes. it should be one small factor among many others. The bulk of REIT returns is expected to come from appreciation in the coming years as they recover. Dividend income is only one component
Very professional with no shoes
Haha should I put a suit on?
seriously ... so he could be just like everyone else! had he worn a tuxedo, it wouldn't make me believe him any more. In fact, quite likely just the opposite. It's a new world out there. Sink or swim. The choice is yours.
Perhaps this is better. www.youtube.com/@CanadianTShirt
@@delinquense i had written a huge bullshit and my apologies to Jussi are the deepest. He is a great guy and fav reits guru
Great video Jussi, I definitely don't like that VNQ prioritizes the larger reits like PLD that are priced at a premium. What are your thoughts on Safehold? I want to start a position but am having troubling understanding why their share price has plummeted so much since 2021 despite improving their portfolio, was it really just higher interest rates?
I am bullish on SAFE. I see it as the king of bets on lower interest rates. I own a position
Good video as usual, Jussi! I really like your shoes… 😂
I need to put more efforts into how I dress on these videos haha
In other words, this man is basically saying, just get an ETF. This guy has three different degrees and knows the field like the back of his hand. Plus he has credibility online. I’m very confident this guy is going to seek alpha and find it and get his 9% dividends plus the upside, but the rest of us are stuck with ETFs and 4.4 dividends. Unless you think you can balance like this guy……impossible.
I agree that an ETF is a good solution for a lot of investors.
Ah! 🤨😀
Okay.. so basically in a nutshell: etfs for usual portfolio diversification, but general REITs for overall portfolio diversification!?
Interesting information for us to consider, but sadly not practical at all for most people who don't have the education and in-depth knowledge to do things as you suggest. For some, I'm sure this video will be very helpful though.
Thanks for your interest!
I have been eyeing this etf called riet, by Hoya. It's $10 a share with 10% yield.
Very tempting
Thanks for sharing!
That’s way too high of a dividend that doesn’t sound sustainable. I don’t like that risk. I’m investing into Realty Income instead.
@@GokuInstinct1 that was 6 months ago. I'm long on O. I've left Riet alone
Hello Mr. Askola,
for you as a real estate investor, it makes sense not to invest in etf. You take the time to research and have the ressorces and knowledge.
In my case, I don't have the investment budget to invest so many reits parallel. I started shortly. So I invest in Reit etf because of the low prises overall at the moment I cannot make so much wrong with that and I have all the typical ones in the portfolio.
But thanks to your tipps I know now what to look for and I can take your tipps into consideration for some direkt investments.
I agree. ETFs make a lot of sense for some investors. Thank you for the addition.
I can't disagree or agree here I like REIT ETF's USRT and XLRE which within 10 year return has return 12-14% but. I like both.
Yes, ETFs can make sense for some investors. It really depends on what you are looking for.
I spend all my money travelling! Life is short.
Hi, thank you for sharing your knowledge. Can you please make a video about the best way to invest in multifamily homes for a beginner investor?
Marlen Islands
You’re not wearing pants!!
😁😁
I was just about to say the same thing! Just earned a subscriber. 😅
It's more efficient
@@askjussi Dear Jussi, listen to a nearly experienced investor with advanced physics background, whats more, Uralic native tongue, and become more efficient by loosing the shirt, too :-)
Garcia Jennifer Thomas Shirley Johnson Jason
My guy, put on some socks.😂
Brown Michael Miller Thomas Johnson Jose
Lopez Ruth Thomas John Moore Daniel
😴
Moore Nancy Lee Helen Taylor Kimberly
Young Margaret Wilson Donna Walker Betty
Put pants on
No