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This Specific REIT Fund Is A Buy

The other day I wrote an article about the ALPS Alerian MLP ETF (NYSEARCA:AMLP) and its bullish seasonal pattern from February to April. The article has been one of my most popular to date, and I have been inspired to look for similar ETF seasonal patterns. Today, I found another, this time involving the MSCI U.S. Real Estate Investment Trust (REIT) Index. The seasonal graph was calculated using the last 20 years of index data, ending December 31, 2016.

As shown on the chart, the bullish season starts at the beginning of March and ends in early May with an average of almost 6% gain.

Note that the seasonal chart is based on an index, not an ETF. I am aware of one ETF that follows the index and that is the Vanguard REIT Index ETF (NYSEARCA:VNQ). You may find other REIT ETFs that are looking bullish at the moment, but there is no guarantee that they will exhibit the same seasonal patterns as this specific index.

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by Steve Auger