ETF Update
Real Estate ETF Serves as Financial Proxy
The risk to the fund is the apartment REITs, which comprise 45% of the fund. It's easy to envision that over the next couple of years, as job security remains shaky, management companies may have to lower rents.
While I have little faith in REITs as portfolio diversifiers, they can be good investments. Because of the correlation between REITs and financials during the crisis, I would consider any REIT exposure as part of the financial portion of a diversified portfolio. Many index providers do this already. The idea of using REITs for part of the financial exposure, combined with a foreign sector ETF like the WisdomTree International Financial Sector Fund(DRF), could be a good way to ride out the next couple of years in case there is another shoe to drop with U.S. banks.TheStreet Premium Services
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
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| 12,454.83 | 1,317.82 | 2,837.53 | 17.45 |
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1.85 |
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0.14 |
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SPDR Gold
152.68
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-0.80%
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