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  • Alex Pettee, CFA

REITs Getting Short Squeezed

  • U.S. equity markets flirted with fresh record-highs this week as concerns regarding economic "overheating" cooled after employment data showed that job growth fell short of expectations for the second straight month.

  • Finishing on the cusp of fresh record-highs, the S&P 500 rallied 0.6% this week. Energy stocks led the rally as Crude Oil and gasoline prices soared to pandemic-era highs.

  • Led by residential REITs, real estate equities led the gains for the second-straight week as the Equity REIT Index gained 2.7% with 17-of-19 property sectors in positive-territory.

  • REITs were active participants in "meme mania" as 8 REITs surged more than 10% on the week while 26 REITs gained at least 5%, led by many of the most troubled and heavily-shorted retail and hotel REITs.

  • Despite a record number of job openings, just 559k jobs were added in May - a mild improvement after a historically disappointing April - as evidence mounts that generous unemployment benefits are delaying the recovery.

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Disclosure: A complete list of holdings and Real Estate and Housing Index definitions and holdings are available at HoyaCapital.com. Hoya Capital Real Estate advises an Exchange Traded Fund listed on the NYSE. Hoya Capital is long all components in the Hoya Capital Housing 100 Index.

Additional Disclosure: It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Data quoted represents past performance, which is no guarantee of future results. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy.

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Hoya Capital Research & Index Innovations is an affiliated index provider and research firm that builds custom indexes tracking U.S. commercial and residential real estate sectors, including indexes tracked by exchange-traded funds (ETFs). 

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