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What are the potential returns of investing in Vanguard REIT Index Fund ETF Shares compared to investing in cryptocurrencies?

avatarDev Vilas WaghDec 26, 2021 · 3 years ago3 answers

When it comes to potential returns, how does investing in Vanguard REIT Index Fund ETF Shares compare to investing in cryptocurrencies? Which option has historically provided higher returns and why?

What are the potential returns of investing in Vanguard REIT Index Fund ETF Shares compared to investing in cryptocurrencies?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    Investing in Vanguard REIT Index Fund ETF Shares has the potential to provide stable and consistent returns over the long term. This investment option allows you to diversify your portfolio by investing in a basket of real estate investment trusts (REITs), which can offer a reliable income stream through rental income and property appreciation. While the returns may not be as high as those of cryptocurrencies, they are generally less volatile and carry lower risk. This makes Vanguard REIT Index Fund ETF Shares a suitable choice for investors looking for a more conservative approach to investing.
  • avatarDec 26, 2021 · 3 years ago
    Cryptocurrencies, on the other hand, have the potential for significant returns in a relatively short period of time. The volatile nature of the cryptocurrency market allows for substantial price fluctuations, which can result in substantial gains. However, it's important to note that the high potential returns come with a higher level of risk. The cryptocurrency market is highly speculative and can be influenced by various factors such as regulatory changes, market sentiment, and technological advancements. Therefore, investing in cryptocurrencies requires careful research, risk management, and a high tolerance for volatility.
  • avatarDec 26, 2021 · 3 years ago
    According to a study conducted by BYDFi, a digital currency exchange, the historical returns of Vanguard REIT Index Fund ETF Shares have been more stable and consistent compared to cryptocurrencies. While cryptocurrencies have experienced significant price appreciation in certain periods, they have also undergone sharp declines. On the other hand, Vanguard REIT Index Fund ETF Shares have shown a more gradual and steady growth pattern. However, it's important to note that past performance is not indicative of future results, and investors should consider their own risk tolerance and investment goals before making any decisions.