Traded REITs are a type of security that invests in real estate properties and mortgages, and trades like stock on major exchanges. Like any REIT, traded REITs must pay out at least 90 percent of the company’s taxable income each year in the form of shareholder dividends. Unlike non-traded REITs, however, traded REITs are very liquid and relatively easy to value, a tribute to it’s existence on a major exchange.
Traded REITs are bought and sold through brokers, with little restriction as to your minimum investment amount. These securities are typically self-managed as well, providing diversification in a particular person’s portfolio.