What types of REITs exist?
There are two primary types of REITs. They are as follows: 1. Publicly-Traded REITs– “Traded REITs” or “listed REITs” are registered with the U.S. Securities and Exchange Commission (the “SEC”) and shares are bought and sold on a national stock exchange just like traditional exchange-traded stocks or funds. While they can provide many of the benefits associated with direct real estate investing, such as income producing dividends, these Traded REITs are subject to the same market volatility and fluctuations of any stock or fund that is traded on a national stock exchange. As a result, investors who invest in Traded REITs should anticipate some correlation to the stock market and the potential for more volatility due to fluctuations in the stock market. 2. Unlisted REITs – “Non-Traded REITs” or “unlisted REITs” are also registered with the SEC, however, shares of these REITs are not publicly traded on any national stock exchange and are, thus, less correlated to the stock market*. The r
