U.S. REITs: A matured asset class

Bob Zenouzi
Chief Investment Officer — Real Estate Securities and Income Solutions (RESIS)

U.S. REITs: A matured asset class

U.S. REITs are in a great position today. But to understand why we’re in a great position today, we have to go back and look at the 20-year track record. REITs have grown tremendously in terms of number of names in the public markets, the market cap, and today, the REITs are in multiple equity indices, namely the S&P 500. In August of 2016, we’re going to have our own global industry classification. So, the REITs have now arrived. It’s a great milestone, a great achievement for the industry.

Today, the real estate industry is very strong. You have very high-quality properties owned by REITs, great management teams with high insider ownership, superior corporate governance. And when we compare the U.S. REITs relative to European, Japanese, or emerging markets, we think we have high-quality companies here. And so, we think the REITs will continue to grow and as that growth and performance continues, you’ll see institutional and retail investors continue to add to their REIT allocation.

The views expressed represent the Manager’s assessment of the market environment as of May 2015, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Views are subject to change without notice and may not reflect the Manager’s current views. The views expressed are general in nature and do not relate to a particular mutual fund.

REITs refer to real estate investment trusts.

REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations.

The S&P 500 Index measures the performance of 500 mostly large-cap stocks weighted by market value, and is often used to represent performance of the U.S. stock market.

Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds' prospectuses and their summary prospectuses, which may be obtained by visiting delawarefunds.com/literature or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.


Investing involves risk, including the possible loss of principal.

Past performance does not guarantee future results.


Gain access to additional commentaries, presentations, and multimedia when you register for our financial advisors website.

Register today


Subscribe to hear from our portfolio managers and analysts on trending topics

I'm interested in hearing from:
Or select:

Subscribe to Insights

Thank you for your subscription!

Top insights

Consult your financial advisor

Your financial advisor can help you decide if an allocation to international or global equities is appropriate for you in light of your goals, time horizon, and attitude toward risk.