Reits as a % of the variable portfolio?

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fishdrzig
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Reits as a % of the variable portfolio?

Post by fishdrzig »

Does anyone here add Reits (eg  VNQ) as a % to the 4 x25?
If so, what %  and what does the rest of the VP look like?
If not, why is it not a good idea?  Thanks
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MachineGhost
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Re: Reits as a % of the variable portfolio?

Post by MachineGhost »

Well, I suppose once they get undervalued again after the next pop, they could be a good buy.  But they're nothing special and they act like equity in economic downturns, so they don't really do anything novel per se.  And are included in VTI.

[img width=800]http://i61.tinypic.com/2mzysmx.png[/img]
Last edited by MachineGhost on Sun May 17, 2015 4:59 pm, edited 1 time in total.
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fishdrzig
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Re: Reits as a % of the variable portfolio?

Post by fishdrzig »

Well you may be right in that VTI has REITS, but VXF has a higher % in REITS, so I may just use this ETF for my Stock portion of the 4 x 25, instead of buying REITS separately.
ngcpa
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Re: Reits as a % of the variable portfolio?

Post by ngcpa »

The mutual fund (PRPFX) currently has about 8.3% of total assets in REITS.  That seems like a pretty good
number.  Studies have shown that 10-15% is best, but these studies were done quite some time ago.  I
believe REITS are less beneficial as a diversifier than in the past.  I don't currently have a PP investment,
but have about 10% in REITS.  As long as long term interest rates stay low, I am quite comfortable
holding REITS.  I have done extremely well investing in them.
Norm 
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mathjak107
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Re: Reits as a % of the variable portfolio?

Post by mathjak107 »

while i do not use the pp , VTI and VXF  are part of my investment portfolio.

i don't usually own reits  as part of my model since i have quite a bit in investment real estate in nyc.

but i speculate from time to time trying to make a quick buck with  ICF  a real estate etf.
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