A real estate investment trust (REIT) is a company that owns or operates income-producing real estate. Unlike other stocks, publicly-traded REITs are not subject to corporate taxes, which tends to mean that more money goes to the investor.
The FTSE NAREIT All Equity Index outperformed the S&P 500 over the last 20 years.
In addition, between 2009 and 2018, equity REIT dividend yields averaged 92% more than the S&P 500 dividend yield.
FTSE NAREIT V.S. S&P 500
Growth of $100k Over 20 Years
Public + Private = The Best of Both Worlds
Real estate provides a great way to build wealth long-term. Having both public and private investments in your real estate portfolio can offer increased diversification and reduced volatility. In the table below, you can see that in a recent 20-year period, investing in a combination of public and private investments had lower volatility and higher risk-adjusted returns than investing in public or private alone.