Real estate is on fire.
It’s a seller’s market as supply is far outpaced by demand in the housing market.
And demand for real estate stocks is also on the rise.
Buying actual real estate is difficult and comes with a lot of red tape.
- Loans.
- Taxes.
- Appraisals.
- Paperwork … lots of paperwork.
It’s why smart investors like you look for different avenues to capitalize on this real estate boom.
The best way to play real estate … outside of actually buying property … is the stock market.
You can skip the hassle of trying to locate and purchase land.
That leads to my stock selection for today’s episode of The Bull & The Bear podcast.
To take a page out of Green Zone Fortunes co-editor Charles Sizemore’s book … this comes with an outstanding dividend.
More on that in a second.
First, let’s break down the stock market trend that led me to this selection.
Real Estate Sector Blazing a Trail
Once you go through the process of buying property, you have to worry about what comes next.
Development and building costs, permits and general upkeep can be more taxing than actually buying the property.
It’s why smart investors are turning to the stock market to invest in real estate.
S&P 500 Real Estate Sector Reaches New Highs
The S&P 500 Real Estate sector index has already reached new highs. And I don’t think it’s done yet.
Over the last 12 months, the sector jumped and faded.
However, this recent bounce seems to be more profound and longer-lasting than previous upticks.
Previous bounces were followed by higher highs.
So, even if the real estate sector pares gains, the next bounce will take it even higher than today.
Vanguard Real Estate ETF
Real estate investment trusts (REITs) are great tools to invest in the real estate market.
But I’ve found a fund that comes with a much smaller expense ratio and a strong dividend yield … without trying to research individual stocks.
The Vanguard Real Estate ETF (NYSE: VNQ) is an exchange-traded fund (ETF) that invests in stocks across mortgage REITs.
It’s like investing in REITs, without trying to find the right one.
In this episode of The Bull & The Bear, I tell you why VNQ is a great investment that gives you strong exposure to REITs and comes with a killer dividend.
The Bull & The Bear
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Safe trading,
Matt Clark
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.
