REITs lag behind SPX with 8.7 pts 1-year gap

Any opinions, news, research, analyses, prices or other information contained on this page is provided as general market commentary and does not constitute investment advice. Cyceon will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

As Cyceon wondered whether the real estate – especially home – prices in the United States are reaching a top, it compared the charts of four major REITs including Schwab US REIT ETF (SCHH), iShares Residential Real Estate Capped ETF (REZ), SPDR Dow Jones REIT ETF (RWR), iShares US Real Etstate ETF (IYR) with the S&P 500 (SPX – in red) on 1-year and 5-year timeframes.

Over the last 12 months, the four REITs are up an average 5.2 percent while the SPX is up 13.9 percent, a significant 8.7 percentage point difference. Over the last 5 years, the four REITs are up an average 58.85 percent while the SPX is up 78.2 percent, a 19.35 percentage point difference.

As a result, there might be some more room for growth for REITs prices when compared with SPX. However, such assumption has to be tempered by real home prices which – in many popular areas – have performed as well – if not better – as the major US indices.

1-year chart


5-year chart


© Cyceon, copy unauthorized without written consent.


Your email address will not be published. Required fields are marked *