Outside of the U.S. the REIT industry is still  in its infancy. For investors looking to diversify their portfolios REITs offer an opportunity to gain exposure to a different asset class. A simple and easy way to invest in foreign REITs is via ETFs.

Foreign-focused ETFs with their distribution yields as of May 27, 2010:

SPDR DJ International Real Estate ETF(RWX)
Distribution Yield: 3.97%

SPDR Dow Jones Global Real Estate ETF(RWO)
Distribution Yield: 3.60%

Cohen & Steers Global Realty Majors ETF(GRI)
Distribution Yield: 4.69%

iShares S&P Developed ex-US Property Index Fund(WPS)
Distribution Yield: 5.01%

iShares FTSE EPRA/NAREIT Asia Index Fun(IFAS)
Distribution Yield: 5.03%

WisdomTree International Real Estate Sector Fund(DRW)
Distribution Yield: 9.47%

Claymore/AlphaShares China Real Estate ETF(TAO)
Distribution Yield: 3.34%

iShares FTSE EPRA/NAREIT Europe Index Fund(IFEU)
Distribution Yield: 3.09%

Some of the emerging countries such as China and India have real estate bubles. However there many countries such as Brazil, Malaysia, etc. where the demand for housing is booming and prices are affordable. Hence investors can allocate a small portion of their assets to foreign REITs.

Disclosure: Long RWX