By: Catherine Yoshimoto, Sr. Index Product Manager
Persistently low interest rates have affected traditional sources of income such as bond coupons. Income-thirsty market participants may feel like they are waiting for a rain drop in a drought. Real estate has traditionally been viewed as an income generating investment, yet a direct investment in a commercial real estate property can be expensive, illiquid and fraught with inconsistent yields. Listed equity real estate investment trusts (REITs), however, provide a tradable liquid alternative to direct real estate investing.