Real Estate
Back in 2016, Real Estate became the 11th sector in GICS®, the Global Industry Classification Standard. This was a smart move, as real estate could and should be an important component in one's portfolio. Also, considering the amount of wealth that has been created throughout the ages via real estate investment, it is quite amazing that it took this long to join this exclusive club. The Real Estate sector is comprised of two group classifications and twelve specific industries, as follows (along with their GICS® codes):
- Real Estate Investment Trusts, or REITs (601010)
- Diversified REITs (60101010)
- Industrial REITs (60101020)
- Hotel & Resort REITs (60101030)
- Office REITs (60101040)
- Health Care REITs (60101050)
- Residential REITs (60101060)
- Retail REITs (60101070)
- Specialized REITs (60101080)
- Real Estate Management & Development (601020)
- Diversified Real Estate Activities (60102010)
- Real Estate Operating Companies (60102020)
- Real Estate Development (60102030)
- Real Estate Services (60102040)
|
Real Estate Investment Trusts (REITs)
A real estate investment trust (REIT) is an organization which owns income-producing real estate in a variety of different property classifications. This dynamic investment group contains REITs which specialize in everything from cloud storage buildings to healthcare facilities to shopping centers. Great wealth has been created via REITs, but beware: if you select poorly this portion of your portfolio can get crushed. This industry group is ultra-sensitive to economic and legislative changes, such as a softening economy or increased regulation. It is wise to have an investment professional help you navigate these waters. |
|