Schwab U.S. REIT ETF [SCHH] Stock Forecast

EastGroup CEO Marshall Loeb joins 'Squawk on the Street' to explain why he thinks the banking sector turbulence could be a 'net positive' for commercial real estate space and more.

Hello! This week's ETF wrap looks at real estate funds with exposure to commercial properties, an area of the market under pressure as investors worry lending is tightening after this month's stress in the banking sector.

Tried to buy a house lately? You wouldn't be the only one – despite buyers waving goodbye to 3% and even 4% mortgage rates that were available over the last three years or so, pending home sales have surged.

REITs are popular with income investors because of their high dividend yields. They are also an asset for growth investors because the market value of REITs increases as their assets. Schwab U.S. REIT ETF is an ETF with an exposure to 128 American REITs.

The dip in the Schwab U.S. REIT ETF's share price does not appear to be a buying opportunity because the real estate sector is expected to perform poorly in 2023. Risk factors such as the banking crisis, rising interest rates, and the impending recession have yet to fully impact the financial and share price performance of real estate companies.

The two recent bank collapses could cause the Federal Reserve to take a break from raising rates, benefiting the real estate sector.

Amid intensifying concerns over the potential fallout from several major tech-focused bank failures, this report examines high-level REIT fundamentals to chart the likely path forward for the real estate industry. Real estate equities have been slammed particularly hard as investors draw parallels to the early stages of the 2008 financial crisis when locked-up credit markets created a cascade of distress.

The REIT sector sharply rebounded from a tough 2022 with an +11.77% total return in January 2023. Micro cap REITs (+16.16%) saw disproportionately strong gains in January, followed by double-digit returns for small caps (+11.79%), mid caps (+11.50%) and large caps (+10.07%).

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Schwab U.S. REIT ETF is a US stock and trading under the symbol SCHH

Schwab U.S. REIT ETF stock price is $19.5 today.

Yes, Schwab U.S. REIT ETF is a publicly traded company.