Tax Treatment and Best Account Location

Daniel recommends tax-deferred accounts for REIT ETFs and explains taxable distributions for income investors.

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Episode notes

The struggle of brick-and-mortar real estate has extended into investment portfolios. Elevated inflation and high interest rates have weighed on the real estate sector over the past few years. Real estate investment trusts or REIT ETFs have not been spared. Yet these exchange-traded funds are popular among income investors. They generate cash and can help diversify a portfolio. So, where do they fit in yours? And which REIT ETFs do Morningstar analysts consider top picks? Dan Sotiroff is the associate director of US Passive Strategies for Morningstar. Dan is also the editor of Morningstar’s ETFInvestor newsletter.

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On this episode:

00:00:00 Welcome

00:01:26 Basics of REIT ETFs

00:04:34 Active vs. Passive REIT ETFs

00:06:03 REIT ETFs’ Performance vs US Stock Market

00:09:20 Cutting the Tax Bill on REIT ETF income

00:10:06 Top REIT ETFs From Vanguard & Schwab

00:13:48 Key Takeaways for Income Investors

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