5 Best ETFs to Invest In for Retirement

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In this article, we discuss the 5 best ETFs to invest in for retirement. If you want to read about some more retirement ETFs, go directly to 10 Best ETFs to Invest In for Retirement.

5. Vanguard Real Estate Index Fund (NYSE:VNQ)

Vanguard Real Estate Index Fund (NYSE:VNQ) is an exchange traded fund that invests exclusively in stocks that real estate investment trusts (REITs) invest in. REITs usually invest in firms purchasing office buildings, hotels, and other real property. 

A premier holding of the Vanguard Real Estate Index Fund (NYSE:VNQ) is Prologis, Inc. (NYSE:PLD), a real estate investment trust that focuses on high-barrier markets. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm AEW Capital Management is a leading shareholder in Prologis, Inc. (NYSE:PLD) with 2.1 million shares worth more than $358 million. 

In its Q1 2021 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and Prologis, Inc. (NYSE:PLD) was one of them. Here is what the fund said:

“Prologis, Inc. (NYSE:PLD) (a U.S.-based real estate investment trust that is the largest owner of modern logistic facilities with a platform that expands more than 950 million square feet of space in 19 countries globally) completing $2.0 billion USD of debt placements at a weighted average interest rate of 0.9% with an average term of more than 13 years. In the process, the company has further solidified one of the most compelling capital structures in the real estate industry with a prudent loan-to-value ratio of approximately 25% that is primarily comprised of fixed-rate debt at an average cost of 1.8% for a term that exceeds 10 years. As a result, the long-tenured management at Prologis, Inc. (NYSE:PLD) (including one of the true leaders in the real estate space CEO Hamid Moghadam) have set up the company for what could be a very rewarding period ahead as incremental rental income and asset management fees seem likely to accrue disproportionately to shareholders on the “bottom-line” with its interest costs locked-in.”

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