FYI: Most investors are aware that technology is the top-performing sector this year, but they might be surprised to learn which sector is at No. 2.
The unassuming real estate sector has quietly racked up a 29.2% gain this year, just behind tech’s 31.6% return and well ahead of the S&P 500’s 20.5% rally.
Real estate has gotten a boost thanks to this year’s tumble in interest rates, which makes the sector’s yields attractive by comparison. The Vanguard Real Estate ETF (VNQ), the largest ETF in the space, currently sports a distribution yield of 3.8%, much greater than the S&P 500 dividend yield of 1.8% or the 10-year Treasury yield of 1.65%.