What are REITs?
How to buy?
Can REITs do spread trading?
REITs are real estate investment trust funds, and their English name is "Real Estate Investment Trust", or REITs for short.
REITs are a kind of trust fund that pools the funds of a specific majority of investors by issuing income certificates, conducts real estate investment operations and management by specialized investment institutions, and distributes comprehensive investment income to investors in proportion.
To put it simply, the essence of REITs is to manage finances on behalf of clients and manage properties on behalf of investors.
Global real estate investments can be made through REITs.
If you are optimistic about U.S. real estate, you can buy American REITs. If you are optimistic about British real estate, you can buy British REITs. As long as you are optimistic about the real estate of any country, you can buy REITs in the corresponding country.
REITs can also be purchased in China. Domestic public REITs funds have passed the subscription period and are now officially traded in the secondary market.
If we want to trade, as long as you have a stock account and then open the permissions for REITs funds, you can trade REITs funds.
Regarding the investment in REITs, it is recommended that we do not conduct spread trading like stocks, because there is a limit to the daily fluctuation range of REITs funds.
REITs funds have been on the market for so many days. According to the historical trend chart, we can see that except for the larger fluctuations on the first day, there are very few fluctuations of 2% on other trading days, so it is not suitable for spread trading.
The profitability of the first batch of 9 publicly offered REITs will definitely be better in the long run, because domestic REITs funds are the first to be launched, and the country must attach great importance to the selection of projects, and their dividend distribution capacity is stronger than that of most stocks. However,
The price is much lower than that of stocks, so if we hold REITs, the dividend income should be very considerable.
To sum up, it is not recommended to do spread trading in REITs.