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REITS are equity so they don’t really balance risk. They are just a sector. Any total market fund has a portion in reits.
FA1 - I hope you aren’t actually giving this advice to clients
Not overly familiar but it comes up in some lazy fund portfolio strategies, suggested 5–15%. I hold a bit of VNQ but it’s less than 1%.
I own some to diversify, but < 5% of overall portfolio. Some value in having them in your Roth, eg the Vanguard REIT ETF, because you won’t get taxed on dividend payouts. As for picking individual funds, that’s just gambling. I’ve done decent on 2 and bombed on 1, so don’t even bother.