For investors who seek income and moderate long-term capital growth, Claymore/AlphaShares China Real Estate ETF (TAO) is far more attractive than the US Real Estate ETFs, such as VANGUARD SF REIT ETF (VNQ). Its PE of 18.5 is much more reasonable than VNQ?s 28; Price/Book of 1.3 is also lower than VNQ?s 2. As US dollar continues to slide along a long-term downward trend, TAO might also give you benefit of Chinese RMB appreciation.
However, both ETFs do not give investors much yield, which is the main reason most REIT investors are attracted to such investments in the first place. Below…
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