Real estate has faced a lot of negative headlines this year. Markets have feared the impact of remote work on office real estate and on downtown areas’ commercial real estate. Those challenges bear mentioning, but they’re not the main story for real estate. Indeed, REITs have proven much more positive than those headlines would suggest. As such, it may be worth eyeing a REIT dividend ETF like the ALPS REIT Dividend Dogs ETF (RDOG ).
The fund sent a key buy signal as of Thursday, November 30. The strategy’s price rose above its 200-day simple moving average of $35.54. Indeed, per YCharts, RDOG’s price rose to $35.72 as of midday Thursday. That buy signal suggests notable momentum for the ETF and market interest in REITs that merits a closer look.
See more: Real Estate: The Underrated Alts Segment
With REITs’ ability to generate a steady stream of income via transparent, liquid investments, they may be a solid option entering 2024. High mortgage rates have driven people into renting over buying, boosting rental REITs. At the same time, tech improvements have helped residential REITs improve efficiency..
REIT Dividend ETF RDOG's Approach
The strategy presents a solid option to enter the space. RDOG embraces the Dogs of the Dow dividend theory, which looks for the strongest dividend players in the DOW. The fund tracks an equal-weighted index that picks the five best dividend REITs within nine different REIT segments.
RDOG charges a 35 basis point fee to track the S-Network REIT Dividend Dogs Index. The REIT dividend ETF has outperformed its ETF Database Category and FactSet Segment averages over the last month, returning 14.7% in that time. By avoiding mortgage REITs and investing in tech REITs, it avoids interest rate fluctuations and gets a “growthier” lean, too. For investors looking for an intriguing real estate play entering 2024, RDOG may appeal.
For more news, information, and analysis, visit the ETF Building Blocks Channel.
vettafi.com owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for RDOG, for which it receives an index licensing fee. However, RDOG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of RDOG.