Investor concerns over the potential effects on the economy from the banking crisis appear to have created more pressure for publicly traded real estate investment trusts (REITS), as well as some funds that focus on them.
The Vanguard Real Estate Index Fund (ticker VGSLX), which invests in REITs that buy office buildings, hotels and other properties, is down more than 8% over the past month, for instance.
Office REITs appear to have been particularly hard hit. Morningstar reported Friday that office REIT stocks have dropped about 24% on average this month.
And Liz Ann Sonders, Charles Schwab & Co. chief investment strategist, tweeted Monday that the S&P 1500 Office REITs Index is down nearly 45% over the past 200 days and hovering above its 2009 low.
Sonders noted last week that REITs took the biggest hit after the Federal Reserve’s press conference Wednesday and had been the second-worst performer month to date at that time.