The Vanguard Real Estate ETF, for example, has roughly 48 percent of its assets in the mid-cap space and may not serve as well in terms of tracking this particular sector of S&P 500 Index.
While interest rates may not rise much further, it’s wise to assume that a steady rise in short-term rates will have at least some impact on longer-term rates, hurting the most rate-sensitive ETFs. That makes the NuShares Short-Term REIT ETF a wise tactical trade.