- Looking at how VNQ has performed since I last covered it, we see that its performance was very strong until the Fed signaled it would raise rates.
- Since then, all REIT ETFs have done poorly, though VNQ has long underperformed other actively traded REIT ETFs. It has also underperformed other dividend-focused ETFs.
- The corporate structure of REITs enhances their exposure to rising rates compared to other kinds of stocks. In addition, many REITs have additional exposures to inflation that threatens their dividends.
- VNQ's Dividend is no longer competitive with safer fixed income alternatives. It can't offer dividend growth either. It is a hold only if you bought at a much lower cost.
For further details see:
Is VNQ Still A Good Choice For Dividend Investors?