After a strong January, Canadian REITs have struggled to capitalize on that momentum, remaining flat. The main reason for this is the interest rate environment. January’s gain was the result of the Bank of Canada’s surprise cut in rates. Since then, we’ve seen some upward pressure on yields, which has made it tough for REITs to make any real headway. REITs are attractive because of the juicy yields they kick off, so when rates rise, they become less attractive. While the near term outlook remains cloudy based on the uncertainty caused by the interest rate picture, the medium and long term fundamentals make REITs an attractive investment for investors looking for cash flow and modest growth over the long term. Within the REIT space, this is my top ETF pick because it offers more diversified exposure to the Canadian REIT universe than either iShares or Vanguard because of its equal weighting. It also offers a more attractive yield than XRE or VRE. If you hold it, be ready for some significant volatility, which can be great buying opportunities.