REIT prices tend to react negatively initially to rate rises which results in short term volatility, but an unadjusted yield of close to 4% on the Vanguard REIT ETF (VNQ), for example, offsets that volatility somewhat over time. That situation should improve somewhat as rates begin their upward path but those who need income from their investments still face some tough choices. The Fed has begun the normalization of interest rates on the assumption, supported by data from around the world, that we are finally approaching a period of inflation.