Below are four mutual funds that invest primarily in real estate investment trusts and are highly rated by Morningstar.
Each has a minimum initial investment of $3,000 or less, making them accessible to most average investors. Each also has a gold or silver medal rating under Morningstar’s analyst ratings, a subjective system which attempts to gauge a fund’s performance prospects, not just its past record. The scale runs from gold to silver, bronze, neutral and negative.
Fund Morningstar analyst rating 12-month return 3-year annualized return 5-year annualized return Expense ratio
T. Rowe Price Real Estate (TRREX) Gold 12.3% 35.1% 2.1% 0.78%
Vanguard REIT Index (VGSIX) Silver 14.2 34.6 3.2 0.24
ING Global Real Estate (IGLAX) Silver 3.4 17.3 -1.9 1.31
JPMorgan U.S. Real Estate (SUSIX) Silver 11.5 33.9 0.9 1.17