Q: As per your recent guidance, with interest rates plateauing, ZRE seems to be bottoming. What would be your opinion re moving some money from VFV, and putting it in ZRE. VFV has done very well and is scheduled to do well in the future. Do you recommend this kind of movement of fixed income from one group to another. Thanking you for the great guidance you have always provided.
5i Research Answer:
We would not consider VFV fixed income, considering how ZRE or REIT distributions are much more of a bond proxy. We do suggest diversifying into sectors and this one would have to be a personal choice. On an average basis, we would be okay branching out and adding income-based names if that is a goal. We would also consider XRE vs ZRE, and their real estate type exposures.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE, VFV.