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Opinions Jon Vialoux
BMO Equal Weight REITs IndexZRE.TOCOMMENTApr 24, 2015
Jon VialouxStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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Up about 11% last 3 months. Basket of 22 REITs. Underperformed TSX since March 2020, but has started to move with most other dividend stocks. He's starting to warm up to areas of higher distributions like REITs. Yield's about 5%.
Prefers US-focused ones, because of the relative strength of the US economy. Likes logistics, storage, seniors homes, US retail.
Down 11.4% over the last 12 months. Underperformed the TSX since early days of the pandemic. Interest rates moving higher is not conducive for REITs to perform well. How healthy is they real estate market in Canada? Macro environment not favourable, especially in Canada. Still uncertainty ahead. Yield is 4.9%.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. In a recovery scenario, there is a long term potential for good returns. You should look at a 3+ year horizon. It is not risk free. Unlock Premium - Try 5i Free
Stockchase InsightsBilly Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. In the current state of REITs, ZRE is an equal weight ETF that reduces single company risk. A good choice for the sector today. Unlock Premium - Try 5i Free
Stockchase InsightsXRE-T showed the experience of the REIT sector in a bad economy. Interest rates are going lower and lower. REITs are typically one of the last things to drop. When the baby gets thrown out with the bathwater, REITs go down also. The pullback last week is the first part of a short term trade you could do but it would not be for a long term hold.
REITs are a good play in the summer. Usually you get falling rates during the summer. Investors want to be less correlated and reduce their risks to equities, and often trend towards the bond markets. From March to May is the 1st period of seasonal strength for REITs, and then June through August is the next period. The chart on this one shows the rising trend line pushing up towards resistance, and eventually you would expect a break out, which is a bullish resolution.