facebookDo REIT ETFs behave differently from a Stock ETF during a market downturn? Are they riskier / do not have the same long-term advantages as stock ETFs due to e.g. rights issue to raise funds, dilution of shares, inability to repay loans? - Seedly

Shaun Goh

24 May 2019

βˆ™

SeedlyTV

Do REIT ETFs behave differently from a Stock ETF during a market downturn? Are they riskier / do not have the same long-term advantages as stock ETFs due to e.g. rights issue to raise funds, dilution of shares, inability to repay loans?

SeedlyTV S1E05

Discussion (1)

What are your thoughts?

Learn how to style your text

Gabriel Tham

24 May 2019

Tag Team Member at Kenichi Tag Team

The REIT etf is a basket of REITs, so if the market downturn affects every REIT in the etf, the etf will react accordingly.

Having a basket of REITs also protects you from having to subscribe to individual rights issue or a collapse of a single REIT. You get some form of diversification.

The etf will rebalance accordingly if there is a rights issue to maintain the portfolio allocation for each reit.

Write your thoughts