Exchange-Traded Funds (ETFs)

As I noted in this recent column, exchange-traded funds (ETFs) that focus on homebuilders, biotechs and banks have been among the top domestic performers of 2012. Considering “a body in motion tends to say in motion,” some of these ETFs may well… Read More

“Junk Bonds? Didn’t those risky things go the way of the DeLorean, Gordon Gecko and Michael Milken back in the 1980s?” That snarky question was recently asked my trading partner during a recent conversation about long-term investments.#-ad_banner-# It’s true that junk bonds are considered… Read More

If you’re a commercial real estate enthusiast, then you know the real estate investment trust (REIT) sector has been hot. Even with a simple index fund like Vanguard’s REIT Index ETF (NYSE: VNQ), you could’ve made nearly 23% annually on the sector during the past three years, including fund expenses.#-ad_banner-# Many individual REITS have done even better. General Growth Properties Inc. (NYSE: GGP), a large rental property… Read More

If you’re a commercial real estate enthusiast, then you know the real estate investment trust (REIT) sector has been hot. Even with a simple index fund like Vanguard’s REIT Index ETF (NYSE: VNQ), you could’ve made nearly 23% annually on the sector during the past three years, including fund expenses.#-ad_banner-# Many individual REITS have done even better. General Growth Properties Inc. (NYSE: GGP), a large rental property and shopping center owner, for instance, has delivered an astounding three-year annualized return of 64%. Extra Space Storage Inc. (NYSE: EXR), the nation’s second-largest owner and operator of storage facilities, has returned 51% a year for the past three years. That’s wonderful, and it’s exactly the sort of performance we all hope for. But it also means you should be extra careful about generally sky-high REIT valuations. The MSCI U.S. REIT Index, a commonly used proxy for the entire U.S. commercial real estate industry and the benchmark… Read More