Real Estate Investment Trust
For many of our clients, a Real Estate Investment Trust (REIT) is the perfect way to diversify their portfolio, experience high-dividend yields, and receive favorable tax treatment. An REIT is a company that owns or finances income-producing real estate – such as apartments, hospitals, hotels, industrial facilities, infrastructure, nursing homes, offices, shopping malls, storage centers, student housing, and timberlands – and are modeled after mutual funds. Ultimately, REITs provide investors with regular income streams, diversification, and long-term capital appreciation. REITs typically pay out all of their taxable income as dividends to shareholders.
Exchange-Traded Funds
At Baron Financial Group, we sometimes explore exchange-traded funds, or ETFs while helping you build a diverse portfolio. ETFs are marketable securities that track an index, and are generally a commodity, bonds, or a basket of assets like an index fund. However, unlike a mutual fund, ETFs trade on the stock exchange, and as a result, experience price changes as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.

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