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REIT Performance
Following a stellar 2019, REITs had a fairly rough start to 2020, finishing January with a negative total return (-0.74%). The REIT sector lagged the NASDAQ (+1.99%) and S&P 500 (-0.16%), but narrowly outperformed the Dow Jones Industrial Average (-0.99%). The market cap-weighted Vanguard Real Estate ETF (VNQ) outperformed the average REIT in January (+1.23% vs. -0.74%) by 197 basis points. The spread between the 2020 FFO multiples of large cap REITs (20.9x) and small cap REITs (12.9x) widened