REITs are legally required to pay out at least 90% of their income to shareholders, making real estate sector funds attractive if you're looking for income-producing investments.1 Some top holdings in a real estate sector fund might include Simon Property Group (SPG) and Public Storage (PSA)...
REITs do not have to payincome taxesif they comply with certain federal regulations. REITs must distribute at least 90% of their taxable income annually to shareholders as dividends anddistributions.3 At least 75% of the REITs’ assets must be in real estate, cash, or U.S. Treasuries, ...