It looks like they have structurally underperformed the market as a whole, and even with the yield differential being +2%, they still get crushed. Seems like a lot of people are paying a lot for weak-ish cash flow and "peace of mind". It looks like the only time they outperformed was between 2009 and 2010 after getting obliterated compared to the market.
If you reinvest VNQ I think you get similar returns to SPY.
Composition of SPY is also heavily weighted towards technology stocks like AAPL, MSFT, FB etc. which is uncertain to grow in a parabolic fashion as the stock price indicates.
But yes, alot of real estate got hit heavily by COVID. But if you look at VNQ components, the top portfolio weightings are data center, cellphone tower, some healthcare, timber, apartment, public storage etc.
So it's not the worst stock out there. Look at energy ETF, that is a dog etf because your EROI on shale energy in US shale plays are extremely low.
Composition of SPY is also heavily weighted towards technology stocks like AAPL, MSFT, FB etc. which is uncertain to grow in a parabolic fashion as the stock price indicates.
But yes, alot of real estate got hit heavily by COVID. But if you look at VNQ components, the top portfolio weightings are data center, cellphone tower, some healthcare, timber, apartment, public storage etc.
So it's not the worst stock out there. Look at energy ETF, that is a dog etf because your EROI on shale energy in US shale plays are extremely low.