I am wondering if someone can point out the advantages/disadvantages of adding an REIT to a basic ETF portfolio that will be cashed out in 3-5 years(or the next good bull mrkt) as down payment for a home. (I have a separate savings acct for emergencies and a separate retirement portfolio).
Some key points that concern me are retailers shifting to online sales as opposed to traditional brick and mortar as well as corporate real estate's move to flexible workplaces offering agile/wfh/remote office employees. A positive for me is that this portfolio resides in a Canadian Tax Free Savings account where all capital gains/dividends are tax exempt. I'm just not sure if it's really that important to have exposure to this sector at this time for my down payment goal.
To me the REIT seems more like a long term steady growth and monthly distribution as opposed to my hopes for good 3-5yr equity growth potential.
Does it make sense to reduce US/CAN exposure by 2.5% each and add 5 % XRE - REIT?
- 35% XIU - CAN
- 35% XSP - US
- 15% XAW - Global
- 05% XBB - Bond
- 10% -------- Cash