Japan REITs: Hidden Gem to Diversify Your Portfolio
Japan has long lost its charm to the international trading community. It has been a boring place to trade in for the past two decades, pretty much. In a mature market like Japan, you can't expect explosive growth like you can find in China.
However, this market offers a great source of diversification and income potential, if you know where you are looking.
The answer lies in Japan REITs. Properties in Japan, be it commercial, industrial, retail, hospitality, or residential, are coveted by mom-and-pop as well as institutional investors from the country and across the APAC region for their stable and (slowly) growing rental income.
The chart shows the largest REIT ETF listed in Japan (blue line) versus JPY and SP500 trendlines. You can clearly see the low correlation between JREIT and SPX.
In times of volatility in the US, and for those with international brokerage capabilities, why not consider this diversifier across the Ocean?
Disclaimers:
However, this market offers a great source of diversification and income potential, if you know where you are looking.
The answer lies in Japan REITs. Properties in Japan, be it commercial, industrial, retail, hospitality, or residential, are coveted by mom-and-pop as well as institutional investors from the country and across the APAC region for their stable and (slowly) growing rental income.
The chart shows the largest REIT ETF listed in Japan (blue line) versus JPY and SP500 trendlines. You can clearly see the low correlation between JREIT and SPX.
In times of volatility in the US, and for those with international brokerage capabilities, why not consider this diversifier across the Ocean?
Disclaimers:
- GMAS is long a few select names within the captioned ETF.
- Investment carries risk.
- Investment in foreign dividend stocks is subject to withholding tax. You may be able to claim better withholding tax rate based on your country's double taxation treaty status.