RT Journal Article
SR Electronic
T1 A Comparison of REIT Investments
JF ETFs and Indexing
FD Institutional Investor Journals
SP 89
OP 95
VO 2007
IS 1
A1 Frank Smith
YR 2007
UL http://guides.pm-research.com/content/2007/1/89.abstract
AB While REIT ETFs do not underperform their respective index, or similarly traded mutual funds on a daily basis, when the total excess return is considered, they underperform mutual funds by nearly 4% per year. Closed-end ETFs underperform mutual funds by approximately 2.2% per year. Unlike previous research, we find that the performance difference between REIT ETFs and mutual funds is almost entirely due to their yearly distributions. The similarity among firms and dividend yields among their top 10 holdings implies this difference is likely due to capital gains distributions as opposed to dividend underpayment. REIT ETFs are also more volatile, both intra-day and over-night.