I have held ZRE for 3 years and am up roughly 10% total return....so a little over 3%/year. It is in my wife's TFSA, as she is more conservative.
I am a huge believer in asset allocation and have a 5% target weighting in REITs, with roughly half of that coming from ZRE. The balance is from CDZ and ZLB. My belief is you can rarely time "what sector is going to perform when", so I set my overall asset allocation and for the most part just leave it....trimming-adding when appropriate.
I also own a home, which I do not include in my investment asset allocation calculations. Technically then, I do not need to own any ZRE.
What is your current view on ZRE as you look forward for the next few years? I am quite content to continue to let it ride, believing it will have it's day.....but maybe I'm just being stubborn. Is your current crystal ball showing conditions that are positive for REITs
Thanks....Steve
We think your ideas around diversifying make sense. Not all assets/sectors will perform all of the time but you never know when a certain space will have its time to shine. Materials is a great example of this. ZRE has done ok over the last two years and provides a solid income stream to investors. While we might not be too excited about the outlook for real estate, a lot of these problems are already known and some of this will be priced in at this stage, so we don't think a diversified ETF like ZRE needs to be sold. Again, we might not expect fireworks here over the next 12 months but also think it can do fine after accoutning for the yield.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.