facebookReits investment question from newbie. Is Reits stocks or ETFs something that we do "passive investing" in? - Seedly

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Anonymous

Reits investment question from newbie. Is Reits stocks or ETFs something that we do "passive investing" in?

I am learning that singapore reits are cyclical, not growth stocks.

I'm a bit confused because i started out with American investment books, where "passive-investing in ETFs" is about "buying your ETFs and then throw away your investment password for 20 years". they have SP500 that grows 10% every year.

But seems like singapore investing is a different ball game. STI is flat! How do people really invest in singapore? Can i buy Sg Reits ETF and hold passively for long term?

or do investors need to buy reits during the low part of cycles and sell during the high part of cycles?

Discussion (22)

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People who buy sgx stocks usually buy big amounts to enjoy dividends for passive income. If want to do trading or have small amount then better to try US stocks for faster growth.

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Robin

18d ago

Administrator at SG

Sg banks and reits can be volatile for trades too

REITS should be passive investing due to its divident nature. However, you need to be aware of what is happening to the REITS. There are few REITS who have got into problem, e.g. declining economy in the country where the property is located (e.g. Hongkong). I learn this the hard way.

Reits, STI ETF and sg stocks are more for dividend and long term hold, not much capital appreciation. They can be seen as stable (and boring), as compared to volatile (and riskier) than US stocks.

Although one can DCA on them, the brokerage and sales fees for these are much higher compared to US stocks and ETF. So it is better to lump sum invest or DCA at longer interval (e.g. yearly vs monthly).

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Personally, i see REITs and STI as a form of passive investment given that my definition of passive ...

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