aaii silicon valley chapter september 8, 2012. fred smith rationale for investing in reits low...
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AAII Silicon Valley Chapter
September 8, 2012
Fred Smith Rationale for Investing in REITsLow correlation with other equitiesIncomeI only use mutual funds and ETFs: Yld 1-yr 5-yr 10-yr SD Sharpe VGSIX 3.11 19.84 3.79 11.12 19.15 1.21
TRREX 2.02 19.36 3.04 11.59 20.01 1.18
VNQ 3.24 20.16 3.95 - 19.14 1.22 IYR 3.39 19.17 2.19 9.64 18.45 1.16 VFINX 1.80 17.82 1.19 6.39 15.63 0.88
Total Returns for S&P 500 (VFINX) and REIT Index (VGSIX)Year VFINX VGSIX
1997 32.19 18.771998 28.62 -16.321999 21.07 -4.04 VFINX VGSIX2000 -9.06 26.352001 -12.02 12.35 Compound Annual Growth Rate 5.37% 8.86%2002 -22.15 3.752003 28.50 36.65 Standard Deviation20.32% 21.74%2004 10.74 30.762005 4.77 11.892006 15.64 35.072007 5.39 -16.462008 -37.02 -37.052009 26.49 29.582010 14.91 28.302011 1.97 8.47
Annual Returns for S&P 500 and REIT Index