What are some good examples of Reit Index Funds to invest in?

Question

Is it true that the average Reit Index Fund has averaged over 20% interest (ROI) in the past 25 years?

Answer 1

A good REIT fund is TRREX from T Rowe Price. It's not an index fund, but it beats the index, so it's actually better. Consider also the REIT ETF ICF. ETFs allow you to trade in and out more easily, which is a big advantage when things get hot or cold, as they often do.

The general consensus of the market commentators now is that REITs are generally overpriced due to the huge run up in the last few years, and you should wait until prices shake down a bit. But that's exactly what they said a year ago, and REITs have had a fabulous year, so who's to say that they can't have another great year. REITs also pay substantial dividends, which provides a cushion against price fluctuations. Personally, I would wait a while before jumping into REITs, until the housing market emerges from its current slump. Historically, prices for REITs are at an all-time high.

Answer 2

VGSNX made about 35% last year...a Vanguard fund but with a $5000. minimum.
WSPAX did about the same but has a heavy front-end load( I think) Which means they charge you up front to buy in and it may take months to get back to "even"
FRESX ( Fidelity) isn't a pure REIT fund but its minimum might only be $2500. ...it gained in the 35% neighborhood, too...and most of the top ten holdings are the same as VGSNX
As far as 25 yr returns, I'm not sure...VGSNX is only about 3 yrs old, and FRESX has averaged 24.6% for the last 5 yrs.and has been up about 17 of the last 19 years.