An article by ETFGuide.com explains how many REITs can offer shelter in the current economic downturn.

One interesting point in the article is that many investors fail to include exposure to international REITs in their portfolio.  International real estate can be a good hedge for American real estate.

“The SPDR DJ Wilshire Real Estate ETF (AMEX: RWX – News) contains exposure to top worldwide real estate markets including Australia,France,Japan and the United Kingdom.”

To be qualified as a REIT in the US under IRS guidelines, a company must invest at least 75 percent of total assets in real estate; derive at least 75 percent of gross income as rents from real property or interest from mortgages on real property; and make annual distributions of at least 90 percent of taxable income in the form of shareholder dividends.