REITs lag behind SPX with 8.7 pts 1-year gap


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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

SPX & REITs - Tradingview.com

5-year chart

SPX & REITs - Tradingview.com

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