Investing in real estate investment trusts (REITs)

If you are looking for income and stability, REITs usually pay large dividends due to tax laws favorable to investors.

REITs generally do not own single-family homes, so they do not move with the rest of the housing market or the stock market.

To decide between the various REITs options, check their expense ratio.

For example, if you just want to own standard U.S. REITs, the Vanguard REIT ETF has a low 0.12 percent expense ratio compared to the 0.35 percent charged by the iShares Cohen & Steers Realty Majors ETF.

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