The financial industry doesn’t lack creativity. Firms have dreamed up investment products to fit every niche of the market. And if a particular market doesn’t exist, they’ll make it.

Not surprisingly, the real estate boom and subsequent bust inspired all kinds of new investment products that let investors (or speculators, as the case may be) take a gamble on housing without having to bet on the whole house. These investment vehicles make sense in theory. Renters who are worried they’ll miss out on real estate deals, for example, can invest in a fund that tracks the U.S. real estate market. Income investors, meanwhile, may find value in buying troubled loans.

But experts warn against jumping into the latest and greatest real estate investment vehicle until considering where it will fit in your portfolio. “If it’s too esoteric, don’t invest in it,” says Evelyn N. MacIntyre a certified financial planner with Capelli Financial Services in Bloomfield Hills, Mich.

Here’s what some financial advisors have to say about three new financial products that promise to let investors dabble in real estate.

MacroMarkets trusts

In June, MacroMarkets, a financial firm cofounded by Yale University housing economist Robert Shiller, launched two new investment vehicles – one bullish, one bearish – that track home prices in 10 major cities. If you’re worried that home prices will fall, you can hedge your bets with MacroShares Major Metro Housing Down. Conversely, if you want to double down on real estate, you can invest in MacroShares Major Metro Housing Up. The trusts, which trade on the New York Stock Exchange and resemble an exchange-traded fund (ETF), don’t invest in actual securities. Rather, assets shift back and forth between the two trusts each quarter to account for changes in real estate prices.

Expert take: While the trusts offer investors a direct – and liquid – stake or hedge on residential real estate, some financial advisors are leery about recommending them to clients. “It’s real estate price speculation pure and simple,” says Michael Kitces, a certified financial planner and director of research for Pinnacle Advisory Group in Columbia, M.D.  (And if you’re truly interested in hedging against your own real estate market, betting for or against an index of 10 cities may be of little use. Real estate is, after all, local.)

Troubled loans

During the credit crunch investors wanted nothing to do with distressed bank loans. Of course, one man’s aversion is another’s opportunity, which is why the market for bad debt is booming. So much so that even individual investors are now buying loans via such sites as BigBidder.com and LoanMarket.net. The risk-reward scenario varies from one loan to the next, but loans typically sell for a fraction of their original value and offer sizeable yields. The caveat: Investors in these loans are responsible for collecting their payments or hiring a loan servicer to do it for them.

Expert take: The market for distressed debt has played an important role in getting our financial system back on its feet, says William Valentine, manager of Valentine Ventures, a wealth management firm based in Bend, Ore. “I would have loved to have seen something like this a couple of years ago.” But that’s not to say he’ll be recommending troubled loans to his clients. “The risk-reward profile will probably be pretty similar to that of high-yield bonds,” he adds. But high-yield bonds don’t come with the hassle of collecting on your loan or, worse, foreclosing on it.

Homebuilder exchange-traded funds

You could buy individual homebuilder stocks (i.e. KB Homes and Toll Brothers), but a better route may be the ETFs that track home builders. The funds, which track a basket of securities but trade like stocks, were decimated last fall. But in recent months they’ve been pumped up by investors who saw value in their fire-sale prices. The SPDR Homebuilders ETF (NYSEArca: XHB) and iShares Dow Jones U.S. Home Construction Index ETF (NYSEArca: ITB) has recently doubled their March lows.

Expert take: Homebuilding is a sector of the market that deserves some attention, says Kitces. “When something is destroyed as much as this sector was, it tends to have upside.” But much of that upside already may have been realized. Even if you do believe in the long-term prospect of home-related stocks, be careful not to go overboard. “Most investors are likely to already have exposure to home stocks through their diversified mutual funds,” says MacIntyre.

What about using these funds as a hedge against higher or – if you opt for an ETF that bets against housing – lower real estate prices? Probably not the best idea, says Valentine. “This isn’t a pure play on housing,” he says. You’re not investing in houses. You’re investing in businesses that build houses. What’s more, the stock market has more influence on these shares than the real estate market. If you’re looking for true exposure to real estate, your best bet is to invest in a Real Estate Investment Trust or REIT fund. These investments are backed by hard assets, says Valentine, and right now they’re yielding more than most buildings earn in rent.