REITs Are Coming of Age
They're finally in a class by themselves.
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On Aug. 31, major market indices will no longer bundle REITs inside of "financials" as an industry classification. Instead, they will reside in a new category called, surprise, surprise, "real estate."
The change, which expands the ranks of S&P Dow Jones Indices and MSCI Inc.’s stock classifications to eleven, is more than cosmetic. Having a home of their own means that REITs will see a flurry of fresh investor attention. In particular, money managers who have to reorder their portfolios to make sure they adequately reflect the make-up of certain indices their funds track are likely to embrace them as well.