Real estate investment trusts, or REITs, have outperformed both stocks and bonds in recent years, making this alternative asset class an essential component for any investor’s portfolio, experts say. A real estate investment trust represents the pooled funds of many investors, which are used to buy and manage income-producing properties. REITs trade on public exchanges, just like stocks. They invest directly in properties and are required to pay out at least 90% of their taxable income as dividends to shareholders. “Investors should absolutely have them somewhere in their portfolio,” says Philip Martin, REIT strategist for Morningstar in Chicago. “They are [...]