The Global X Super Dividend REIT ETF (ticker symbol SRET) is a real estate investment trust. Its current annual yield is 7.56% (For reference, the average return on a physical investment property is 7%). The high yield for this REIT makes this fund very appealing. The fund’s expense ratio is .35%. It only has a 17% turnover rate; however, REIT dividends get taxed as regular income so it is best to keep this fund in a tax advantaged retirement account if you want to invest in it.
This fund has a collection of high yielding REITs. It only invests in real estate, but it does invest in different types of real estate such as apartment complexes, hospitals, and other types of real estate. Although this REIT pays monthly and has a very good yield, its historical performance suggests that it is more volatile than the average REIT. Even so, its average rate of return is higher than the average REIT.
If you are looking to add some real estate to your investment portfolio without having to actually purchase physical real estate, this fund may be worth looking at. Del Walmsley of Lifestyles Unlimited (who hates investing in the stock market), has said most of his students get a 7% return on their investments. Including dividends, SRET has returned 8.2% since its inception. In essence, this REIT is one of the few that has a history of beating the average returns of the average physical real estate investor’s portfolio (Keep in mind that the ones that are really good at investing in physical real estate have returned as high as 11% so SRET is not guaranteed to out perform all physical real estate investments).