Real Estate Investment Trust (REIT) ETFs are a powerful tool for investors looking to diversify their portfolios and gain exposure to real estate without directly owning properties. These funds provide accessibility, liquidity, and the potential for consistent income, making them an attractive addition to portfolios for investors of all ages. Here's how you can get started.

Why Invest in REIT ETFs?

Before we do, let’s recap on why investing in REIT ETFs is a wise consideration for your portfolio. Real estate has historically been a stable asset class, offering long-term growth and steady income. REIT ETFs make this asset class accessible by pooling a variety of real estate sectors into one fund. Whether you're new to investing or a seasoned pro, including REIT ETFs in your portfolio can:

• Diversify Your Holdings: Spread your risk across multiple real estate sectors and geographies.
• Generate Income: REIT ETFs are known for paying high dividends, making them ideal for income-focused investors.
• Offer Liquidity: Unlike direct property ownership, REIT ETFs can be traded on stock exchanges, giving you flexibility and ease of access.

Steps to Invest in REITway ETFs

1. Decide on Your Investment Budget

Before diving in, evaluate your financial situation and goals:

• Affordability: Determine what you can comfortably invest monthly or as a lump sum.
• Risk Tolerance: REIT ETFs can be affected by interest rate changes and market volatility—ensure you're comfortable with potential fluctuations.
• Investment Horizon: Aim for a medium to long-term commitment (5-10 years) to maximize returns and ride out market cycles.

2. Open a Brokerage Account

To invest in REIT ETFs, you'll need a brokerage account. Here's what to consider:

• Choose a Broker: Look for platforms offering access to a wide range of ETFs. 

In South Africa, options like ETFSA, EasyEquities, FNB Share Builder, or Standard Bank Online Trading are worth exploring. You can contact us for more information on these brokers.

• Evaluate Fees: Opt for brokers with low transaction fees and no hidden charges.
• Account Type: Depending on your goals, you can choose a regular brokerage account or tax-efficient investment accounts like Tax-Free Savings Accounts (TFSAs).

3. Research REIT ETFs

Not all REIT ETFs are created equal. Spend time researching to find one that matches your goals.

Use the Fund Factsheets of the various products to make your decisions. Compare the Reitway ETFs here.

4. Evaluate Performance and Risks

Dig deeper into the REIT ETF’s track record and potential risks:

• Historical Performance: Look at how the ETF has performed in different market conditions.
• Risk Factors: Understand sensitivity to interest rates, sector-specific risks, and geographical exposure.
• Volatility: Ensure the ETF's price movement fits your risk tolerance.

5. Place Your Order

Once you've chosen an ETF, it's time to invest:

• Enter the Ticker Symbol: Every ETF has a unique ticker code (e.g., "RWDVF").
• Choose an Order Type:
  • Market Order: Buy shares at the current price for immediate execution.
  • Limit Order: Set a price you're willing to pay, and the trade will execute only if the ETF reaches that price.

In South Africa, platforms like EasyEquities simplify this process, letting you buy fractional shares if you can’t afford a full unit.

6. Stay Informed

To make the most of your investment, keep up with:

• ETF Updates: Stay aware of changes in holdings, fees, or management strategies, updated on our website monthly.
• Reitway Updates: Stay up to date on Reitway Investor updates and sign up to our newsletter here. 

Start Today

Investing in REIT ETFs is a smart way to add the stability and growth potential of real estate to your portfolio. With accessibility, diversification, and income potential, they’re an excellent choice for anyone looking to build wealth over time.

Start by exploring brokerage platforms, researching your options, and taking the first step toward making real estate a part of your financial future. Whether you're just starting out or adding to an existing portfolio, REIT ETFs can help you achieve your goals with confidence.

Contact Greg or Lauren at (021) 551 3688 or [email protected] for more information.

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