Balancing your strategic asset allocation with US REITs

A core US REIT allocation to improve long-term risk-adjusted returns

Time to read: 3 min  

The basis of asset allocation is to combine asset classes that have low performance correlations, with the goal of optimizing the risk-return profile of the overall portfolio. A traditional strategic asset mix includes allocations to both stocks and bonds — but less often do we see a targeted allocation to US real estate investment trusts (REITs) in that mix for individual investor portfolios.


A new generation of nontraditional REIT opportunities

Infrastructure, data centers and timber REITs are growing in importance

Time to read: 4 min

When most investors think about traditional real estate investment trust (REIT) investment opportunities, they often think about the “four major food groups” of real estate — the retail, office, residential and industrial sectors. While these sectors continue to be a major component of REIT investing, they are increasingly being joined by nontraditional REIT sectors. Our growing reliance on technology and changing demographics are leading to new opportunities in three nontraditional REIT sectors: infrastructure, data centers and timber.

A changing picture of the REIT landscape