The Rodney Dangerfield Sector:

Below is the chart of the real estate sector, which never really gets the “respect” or the attention that it deserves. The XLRE has gained nearly 30% YTD, and that is a great combination of capital appreciation and often solid dividend yields. The yield on the XLRE is at 2.9% just a touch below the XLU’s 2.93% for the best dividend yield of sector ETFs (and in the current environment of investors searching for yield the XLRE is trouncing the XLU on a YTD basis with the latter higher by just more than 7%). That makes for a very worthy performance in 2021, being the third-best major S&P sector of 11, as the financials and energy have advanced 29.8 and 31.5% respectively via the XLF and XLE. The XLRE is on a 6-week winning streak with the last 4 all CLOSING very tightly with a 46 handle, although truth be told this group tends to trade tautly overall. That being said the allure of firm PRICE action and nice payouts is attractive, and the XLRE fits the bill whether or not it gets the appreciation it merits.

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