REIT

REIT stands for Real Estate Investment Trust and refers to an exchange-traded investment instrument that enables diversified investment in real estate. Instead of directly owning real estate, investors purchase shares in real estate companies.

From an investment perspective, REITs offer almost all the advantages of direct real estate ownership, but without the disadvantages. REITs are generally liquid, well diversified, have leverage without margin calls like stocks, require no work, and can be purchased in small positions.

They are therefore very well suited as an addition to a portfolio, as they have a relatively low correlation to the bond and stock markets.

In the following video podcast, we present this asset class in more detail: Real estate or REITs: Which is the better investment?