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I have $5000 right now! Put in Real Estate ETF or REIT Mutual Fund?


I have a good feeling thst commercial real estate will give good returns for some more years. I am planning to go for T Rowe Price REIT fund(TRREX). ANy reason why I should not? I will be doing dollar cost averaging. How much will be the cost and benefit if I go for an ETF? Any suggestions why and why not?

Sounds like you have a lot of questions about this investment.
I would suggest you put this into your T Rowe Price mutual fund's Money Market account which presently is probably paying about 5% interest with really no risk. (as of Jan. 2007)

Just park in there for a while and search out what the best investment choice you should make which may take you a month or months but in the meantime at least you can get the best return with really hardly any risk.
In addition when you are ready to make some decisions you can easily roll this amount into your new plan since you would already be a T Rowe customer.

You could try the first bank of totnesmartin!

Where you put the $5,000 depends on your goals and the amount of risk you are willing to take. Your two choices could result in dead money for a year or two.

I would stay away from a reit for at least 6 more months unless you can tolerate the losses in the first three that is sure to happen.

Now on the OTHER hand there is a global ETF reit for around $68 this shoudl get some serious attention if you want to go that route but irregardless of what you decide I would NOT put all $5000 into thsi venture.

I'd put it in real estate tax liens with 12-18% returns. They're fixed by state law (depending on your state) and are much higher than some of the returns coming from REITs.

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