On Diversification and Home Ownership

In a previous post, I wrote that I like investing in REITs because it gives me more exposure to real estate (i.e., more diversification) than I’d get from buying index funds alone. (Recall that the typical market-capitalization-weighted S&P 500 index fund is going to be about 3% REITs.)* I think that real estate is aContinue reading “On Diversification and Home Ownership”

Why Not Just Buy Index Funds?

For any reasonably aware investor, the first question for the REIT Dude would be “Why bother with any of this?  Why not just invest in a low-cost S&P 500 index fund like SPY or, even better, a low cost total-market index fund like VTI/VTSAX?  Why, You the Hypothetical Discerning Investor (“YTHDI”) might ask, should youContinue reading “Why Not Just Buy Index Funds?”