What is a REIT Mutual Fund

A Real Estate Investment Trust, or REIT, is an investment product that specializes in owning, operating, leasing, or financing real estate. Created by Congress in 1960, REITs allow small investors the ability to invest in commercial real estate. REITs can specialize in a specific real estate sector or can invest in a variety of sectors.

An investment in a REIT is not a direct investment in real estate but rather an investment in companies that manage real estate. Similar to a mutual fund, the returns on a REIT are dependent on the skills of the REIT's management. Each investor shares proportionately in the fund's returns and any capital gains or losses.

A REIT mutual fund is focused on owning publicly traded REITs that are purchased and sold on the major stock exchanges. By leveraging the investment power of a large group of shareholders from various REITs, investors can have indirect ownership in a large number of commercial real estate properties. Also, REIT mutual funds are liquid. Please note that Mutual Fund redemption will be at the Fund's Net Asset Value; therefore you may receive more or less than your original cost.

Click here for details on Pricing and Purchasing/Redeeming Fund Shares.

Click here to see the Wells Dow Jones Wilshire U.S. REIT Index Fund - Class A and C shares fact sheet.
Click here to see the Wells Dow Jones Wilshire U.S. REIT Index Fund - Class I shares fact sheet.

You should carefully consider the investment objectives, risks, charges, and expenses of the Wells Dow Jones Wilshire U.S. REIT Index Fund before investing. The prospectus contains this and other information about the Wells Dow Jones Wilshire U.S. REIT Index Fund. Call Wells Real Estate Funds at 800-448-1010, or click here for a copy of the prospectus. You should read the prospectus carefully before investing.

Please click to review the Wells DJW U.S. REIT Index Fund Statement of Additional Information and Annual Report.

The fund's concentrated holdings in the real estate sector of the stock market make it less diversified across industries than many mutual funds; therefore, changes in the economy affecting real estate will usually result in greater impact on the fund's performance.

Be advised that investments in real estate and in REITs have various risks, including vacancies and devaluation based upon adverse economic and regulatory changes.

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What is a REIT Mutual Fund?