While both methods of investment allow investors to
achieve real estate exposure, it's a bit like comparing apples and oranges.
Not exact matches
Exposure to commercial property is generally
achieved through
real -
estate investment trusts (REITS) or ETFs.
My goal in creating the portfolios is to
achieve exposure in commodities, bonds, equities, and
real estate.
This is
achieved by having a significant
exposure to fixed income securities, several different types of stocks,
real estate, and tangible commodities that somewhat track inflation.
Furthermore, as shown in Portfolio C, investing 20 % of the portfolio in
real estate, while further reducing
exposure to stocks and bonds,
achieves higher risk - adjusted returns (8.54 %) and a higher Sharpe Ratio of 0.75.