My (Al Z) Approach to REITs: ETFs• I use US and International REITs as 2 of the 10 asset classes I

allocate my funds across– Assume non-correlated to other assets (in general true - not so true

since the ‘07 time frame)– Include are R.E. related items: e.g., home builders, infrastructure

builders, mortgage REITs• I take a “Core and Explore” approach - limited by REIT selections in

401Ks, etc.– Core via ETFs, CEFs or MFs; Explore with specific REITs– Instruments: CSRIX, ITB, RNP, VNQ/IYR, REZ, TAO, RWX, IGF, PXR, REM– Selection of ETFs in this area is somewhat limited (short histories,

limited liquidity ($1M/day), multiple look-alikes)• For the core: I time with a 10 month SMA to be in REITS or in

cash/bonds– If long REITS I choose the top 3-5 ETFs based on near-term gains

(combination of 1, 3, 6 and 12 month gains)– I also have a “Best REIT ETF” based on Sector Surfer (see next page)

04/21/23 AAII SV 1

04/21/23 2AAII SV

Reasonable

My (Al Z) Approach to REITs: ETFs

My (Al Z) Approach to REITs: Stocks • For the “explore” part of the portfolio I choose 12 US

REITs. – These 12 REITS are timed via a 10 month SMA on the IYR

• These REITs are chosen by what a friend calls his “Jack Welch screen” – Daily trading volume > $1M (liquidity test)– Take the Top 12 REITs by their revenue (“Buy the Biggest”)– Rotate/update the 12 REITS once per year (on 12/31/xx) or

whenever the timing signal signals a buy condition• Following slide shows the performance of IYR, the

timed IYR and the timed 12 REIT portfolio• I have been running this portfolio for 2+ years at

present getting similar results to the back test.04/21/23 AAII SV 3

04/21/23 4AAII SV

MDD 22%Calmar: 0.55

My (Al Z) Approach to REITs: Stocks

Key:Black IYR B&HBlue IYR TimedRed 10 12 REITs by Rev Timed