What are REITs?

REIT stands for Real Estate Investment Trust and is a listed investment instrument for diversified investment in real estate. Instead of owning real estate directly, the investor holds shares in real estate companies.

From an investment perspective, REITs offer almost all the advantages of direct real estate ownership, but without many of the disadvantages. REITs are generally liquid, well diversified, leveraged like equities with no obligation to make additional contributions and do not involve any work.

They are therefore very suitable as a portfolio addition, as they have a relatively low correlation to the bond and equity markets.

We present this asset class in more detail in the following video podcast: Link.