Recently, NAREIT asked Ibbotson Associates – a leading authority on asset allocation – to examine the historical investment performance of REITs. Ibbotson found that:

• REITs offer an attractive risk/reward tradeoff
• The correlation of REIT returns with other asset classes has declined over the past 30 years
• REITs may boost return or reduce risk when added to a diversified portfolio
• REITs are worth investigating as an addition to many types of portfolios. The goal of diversification is to lower the risk of a portfolio for a given level of return. Because of their declining correlations with other types of investments
  (Source: NAREIT’s website)

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