Laura Bogart

Sun, Jun 1, 2025, 6:16 AM4 min read

If you’ve heard one piece of investing advice, it’s that you need to diversify your portfolio. It sounds good, but as you nod your head, you might wonder how exactly you can go further than the healthy mix of asset classes, sectors and even geographic regions you already have in place.

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However, every smart investor — whether you’ve been swimming in the sea of stocks for a while now or just started dipping your toe in — knows that you’ve got to regularly review your portfolio to determine when and how to change things up. Adding real estate investments, as well as companies that produce emerging technology, can provide new opportunities for growth while helping manage risk over time.

While these industries may be new to you, it’s easier to get started investing in them than you might think — especially if you follow a few simple tips.

One of the core benefits of adding real estate to your portfolio is the fact that real estate doesn’t always trend with the stock market — meaning that even if there’s volatility on Wall Street, that doesn’t mean it’ll hit your investments on Main Street. In addition, property values generally tend to increase over time due to factors like inflation, demand and limited land supply.

You also enjoy great flexibility in how you approach real estate investing: You have the option of buying a property, or multiple properties, so you can rent them out to other people, either as long-term rentals or short-term vacation stays through platforms like Airbnb or Vrbo. Even if being a landlord seems overwhelming to you, you can outsource the day-to-day management to a property manager. If your rental income covers those costs, you could still walk away with a solid profit.

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That said, if you don’t want to take on the responsibilities of direct, hands-on property ownership — or don’t have the capital to do it — you might consider a real estate investment trust (REIT). A REIT is a publicly traded company that owns or finances income-producing real estate, such as shopping centers, apartment complexes or office buildings. You can buy shares in a REIT just like you would a stock through any brokerage account.

The perks of investing in a REIT? It’s highly liquid and requires a low minimum investment. It also pays dividends regularly, typically on a quarterly basis. That said, because REITs trade like stocks, you do have less control over the underlying assets and may experience market volatility.