The iShares Residential and Multisector Real Estate ETF (NYSE:REZ) is down over 31% year-to-date, as real estate investment trusts (REITs) are some of the most sensitive assets to changes in interest rates. Nearly a third of the ETF’s 41 holdings are invested in healthcare REITs with Public Storage (NYSE:PSA) and Welltower being its top two holdings accounting for 12% and 7.82% of the total portfolio, respectively.
Not to mention, healthcare REITs are among the top-performing REIT sectors since 2009, averaging an annualized 10-year return of approximately 12%, as reported by SPGlobal. With earnings set to be released after the market closes on Monday, it will be interesting to see how rising interest rates have impacted the following two REITs' quarterly earnings.
