Transcript Correlation between S&P 500 and REIT Index

AAII Silicon Valley Chapter
September 8, 2012
Fred Smith
Rationale for Investing in REITs
 Low correlation with other equities
 Income
 I only use mutual funds and ETFs:
Yld
VGSIX 3.11
TRREX 2.02
VNQ 3.24
IYR
3.39
VFINX 1.80
1-yr
19.84
19.36
20.16
19.17
17.82
5-yr
3.79
3.04
3.95
2.19
1.19
10-yr
11.12
11.59
9.64
6.39
SD Sharpe
19.15 1.21
20.01 1.18
19.14 1.22
18.45 1.16
15.63 0.88
Total Returns for S&P 500 (VFINX) and REIT Index (VGSIX)
Year
1997
1998
1999
VGSIX
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
VFINX VGSIX
32.19 18.77
28.62 -16.32
21.07
-4.04
-9.06 26.35
-12.02 12.35
-22.15
3.75
28.50 36.65
10.74 30.76
4.77 11.89
15.64 35.07
5.39 -16.46
-37.02 -37.05
26.49 29.58
14.91 28.30
1.97
8.47
VFINX
Compound Annual Growth Rate
5.37%
8.86%
Standard Deviation 20.32% 21.74%
Annual Returns for S&P 500 and REIT Index