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How to keep all your real estate trusts under one roof

The best way to profit from Real Estate Investment Trusts, says this analyst, may be to own a bundle of them in one fund.

They're the ones that got away, sort of. The one group of income trusts that will be left largely unscathed by the trust tax introduced last fall are Real Estate Investment Trusts. Usually known as REITs.

In general terms, REITs with predominantly Canadian assets will escape the 2011 imposition of the tax; those with significant U.S. or other foreign holdings (think hotels and senior care) will have to restructure, or pay.

But of course it's still 2007. And REITs of all kinds remain a strong investment, says Mr. Gordon Pape in the The Income Investor. There's a way to profit from REITs of all kinds, too.

It's an exchange traded fund from Barclays Global Investors called iShares CDN REIT Sector Index Fund (TSX-XRE). (You'll also find it listed as iShares CDN S&P/TSX Capped REIT Index Fund). Here's why it's a good place to be, according to Mr. Pape.

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