Exchange traded fund or real estate investment trust: What is your choice?

[George Alford]

Investing in the stock market is one of the popular options for people who’re to supplement their present income. The employment pensions are fading as government turns its back to extend help. In this situation, average people are left with no other choice than investing a large portion of the income to secure their financial future. Most of the people think that investing strategically can help them to get large return in future. There are two most popular investment options like exchange traded funds and real estate investment trusts. If you’re confused while choosing one from these two options, then comparing both the options can help you determine the right option.

Here are some of the points you can consider in order to determine the best option for you:

1. Exchange traded funds:  
Exchange traded funds are introduced that is similar to the design of traditional mutual funds. Generally, the fund is build with the help of merging the individual stocks and bonds. They’re designed to get similar return as the market index like the S&P 500. When you invest in exchange traded funds, you may find same features of trading individual stocks and bonds. The risks associated with these trading are generally low.

2. Real estate investment trusts:
You can manage to invest in different types of real estate with the help of real estate investment trusts. Your company can be eligible as an REIT if it meets the criteria. One of the criteria is to invest more than 75% of its assets in real estate. You can trade real estate investment trusts in a similar way like the exchange traded fund. There is one of the crucial differences between real estate investment trusts and exchange traded fund. The difference is that REITs are required to focus their investments on the real estate industry.

3. Mutual fund:
People are benefited by investing in the mutual fund as it offers diverse way in order to take advantage of investing in securities. The fund managers generally supervise the mutual fund and they guide people to determine the best securities to invest in, especially on the basis of some of the funds.

Therefore, you’re required to keep the above mentioned points in mind when you plan to determine your investment option. If you strategically invest, then you can manage to secure your financial future with ease.