Q: Thoughts on RMAX as a diversified REIT holding in US and Canada instead of a few individual stocks? Generally what % of portfolio would be good to allocate to REITs in today's environment?
5i Research Answer:
We are fine with the positioning and active strategy of RMAX, but the ETF is quite small at $47M assets. We would prefer $75M. Its three year return is 2.51% but it should do better if rates start to decline. Because of its size we would not want a huge position here, but on average we would see 10% as the maximum REIT exposure for the current market. Many investors consider 'their house' as part of a real estate allocation and this makes sense to us.