Real estate has been a great vehicle for increasing wealth. Buying real estate ETFs is an easy and affordable path to exposing your portfolio to the real estate market. REITs are companies that own or finance real estate assets. Shares of public REITs trade on stock exchanges, making it simple for anyone to invest in portfolios of real estate properties. REITs are generous dividend payers because they are mandated to deliver at least 90% of their taxable income back to shareholders. As such, they are an important part of any well-rounded portfolio and particularly valuable to investors seeking dividends.
What is the Best REIT ETF?
- INDS: Pacer Benchmark Industrial Real Estate SCTR ETF
- XLRE: The Real Estate Select Sector SPDR Fund
- RSPR: Invesco S&P 500 Equal Weight Real Estate ETF
- VNQ: Vanguard Real Estate Index Fund
- ICF: iShares Cohen & Steers REIT ETF
- BBRE: JPMorgan BetaBuilders MSCI U.S. REIT ETF
- PSR: Invesco Active U.S. Real Estate Fund
- USRT: iShares Core U.S. REIT ETF
- NURE: Nuveen Short-Term REIT ETF
- VRAI: Virtus Real Asset Income ETF
| Ticker | Name | MER | 5Y |
|---|---|---|---|
| INDS | Pacer Benchmark Industrial Real Estate SCTR ETF | 0.55% | 9.89% |
| XLRE | The Real Estate Select Sector SPDR Fund | 0.10% | 5.38% |
| RSPR | Invesco S&P 500 Equal Weight Real Estate ETF | 0.40% | 4.99% |
| VNQ | Vanguard Real Estate Index Fund | 0.12% | 3.66% |
| ICF | iShares Cohen & Steers REIT ETF | 0.33% | 3.62% |
| BBRE | JPMorgan BetaBuilders MSCI U.S. REIT ETF | 0.11% | 3.54% |
| PSR | Invesco Active U.S. Real Estate Fund | 0.35% | 3.52% |
| USRT | iShares Core U.S. REIT ETF | 0.08% | 3.52% |
| NURE | Nuveen Short-Term REIT ETF | 0.35% | 3.15% |
| VRAI | Virtus Real Asset Income ETF | 0.55% | N/A |
10. Virtus Real Asset Income ETF
Virtus Real Asset Income ETF (VRAI) seeks to provide passive exposure to U.S. listed, real asset securities by tracking the Indxx Real Asset Income Index, which is comprised of real estate, natural resources and infrastructure stocks with a history of providing income and dividend growth. The Fund differs from other real asset strategies in that it does not directly invest in hard assets or commodity instruments; rather, it exclusively invests in stocks in real asset categories and has a specific focus on income. Investing in stocks across real asset segments may offer investors the opportunity to participate in equity growth potential, with the additional potential benefit of protecting against rising inflation.
| Name | Weight |
|---|---|
| CLEARWAY ENERGY INC-C | 1.38% |
| NEXTERA ENERGY PARTNERS LP | 1.26% |
| SOUTHERN COPPER CORP | 1.26% |
| PETROLEO BRASILEIRO-SPON ADR | 1.24% |
| AVISTA CORP | 1.24% |
| ALLIANCE RESOURCE PARTNERS | 1.21% |
| GOLD FIELDS LTD-SPONS ADR | 1.21% |
| SIBANYE-STILLWATER LTD-ADR | 1.20% |
| AMERICAN ELECTRIC POWER | 1.20% |
| CRESCENT POINT ENERGY CORP | 1.20% |
9. Nuveen Short-Term REIT ETF
Nuveen Short-Term REIT ETF (NURE) provides exposure to U.S. real estate investment trusts (REITs) with short-term lease agreements which may exhibit less price sensitivity to interest rate changes than REITs with longer-term lease agreements. The Fund seeks to track the investment results, before fees and expenses, of the Dow Jones U.S. Select Short-Term REIT Index which is composed of U.S. exchange-traded equity REITs that concentrate their holdings in apartment buildings, hotels, self-storage facilities and manufactured home properties which typically have shorter lease terms than REITs that invest in other sectors.
8. iShares Core U.S. REIT ETF
iShares Core U.S. REIT ETF (USRT) seeks to track the investment results of an index composed of U.S. real estate equities.
- Low cost access to diversified U.S. REITs (Real Estate Investment Trusts)
- Seek income and growth with broad exposure to U.S. real estate across property sectors
- Use at the core of a portfolio for long term exposure to U.S. real estate
| Ticker | Name | Weight |
|---|---|---|
| PLD | PROLOGIS REIT INC | 9.58% |
| EQIX | EQUINIX REIT INC | 6.83% |
| WELL | WELLTOWER INC | 5.29% |
| SPG | SIMON PROPERTY GROUP REIT INC | 4.63% |
| O | REALTY INCOME REIT CORP | 4.42% |
| DLR | DIGITAL REALTY TRUST REIT INC | 4.26% |
| PSA | PUBLIC STORAGE REIT | 4.18% |
| EXR | EXTRA SPACE STORAGE REIT INC | 2.96% |
| VICI | VICI PPTYS INC | 2.95% |
| AVB | AVALONBAY COMMUNITIES REIT INC | 2.69% |
7. Invesco Active U.S. Real Estate Fund
Invesco Active U.S. Real Estate Fund (PSR) invests primarily from a universe of securities that are included within the FTSE NAREIT All Equity REITs Index at the time of purchase. The selection methodology uses quantitative and statistical metrics to identify attractively priced securities and manage risk. The Fund seeks to achieve high total return through growth of capital and current income by investing principally in equity real estate investment trusts (REITs). Portfolio management generally conducts a security and portfolio evaluation monthly.
| Ticker | Name | Weight |
|---|---|---|
| EQIX | Equinix Inc | 9.18% |
| CCI | Crown Castle Inc | 7.64% |
| PLD | Prologis Inc | 6.86% |
| DOC | Healthpeak Properties Inc | 4.97% |
| EXR | Extra Space Storage Inc | 4.90% |
| KIM | Kimco Realty Corp | 4.88% |
| AVB | AvalonBay Communities Inc | 4.88% |
| AMT | American Tower Corp | 4.83% |
| SPG | Simon Property Group Inc | 4.82% |
| PSA | Public Storage | 4.76% |
6. JPMorgan BetaBuilders MSCI U.S. REIT ETF
JPMorgan BetaBuilders MSCI U.S. REIT ETF (BBRE) seeks investment results that closely correspond to the U.S. equity REIT market by investing at least 80% of its assets in securities included in the MSCI US REIT Custom Capped Index
- The Index measures the performance of U.S. equity REIT securities and primarily includes small- and mid-capitalization companies
- Using a “passive” investment approach, the Fund attempts to replicate the Index as closely as possible
| Ticker | Name | Weight |
|---|---|---|
| PLD | PROLOGIS INC REIT USD | 9.82% |
| EQIX | EQUINIX INC REIT USD | 7.16% |
| WELL | WELLTOWER INC | 4.82% |
| SPG | SIMON PROPERTY GROUP INC | 4.42% |
| O | REALTY INCOME CORP REIT | 4.14% |
| DLR | DIGITAL REALTY TRUST INC | 4.10% |
| PSA | PUBLIC STORAGE REIT USD | 4.07% |
| EXR | EXTRA SPACE STORAGE INC | 3.10% |
| VICI | VICI PROPERTIES INC REIT | 2.84% |
| AVB | AVALONBAY COMMUNITIES | 2.75% |
5. iShares Cohen & Steers REIT ETF
iShares Cohen & Steers REIT ETF (ICF) seeks to track the investment results of an index composed of U.S. real estate investment trusts (REITs).
- Exposure to large real estate companies that are dominant in their respective property sectors
- Access to U.S. real estate investment trusts (REITs), which invest in real estate directly and trade like stocks
- Use to diversify your portfolio and express a view on the U.S. real estate market
| Ticker | Name | Weight |
|---|---|---|
| — | Vanguard Real Estate II Index Fund Institutional Plus Shares | 13.06 % |
| PLD | Prologis Inc. | 7.61 % |
| AMT | American Tower Corp. | 5.82 % |
| EQIX | Equinix Inc. | 4.90 % |
| SPG | Simon Property Group Inc. | 3.23 % |
| WELL | Welltower Inc. | 3.16 % |
| PSA | Public Storage | 2.90 % |
| CCI | Crown Castle International Corp. | 2.90 % |
| O | Realty Income Corp. | 2.84 % |
| DLR | Digital Realty Trust Inc. | 2.67 % |
4. Vanguard Real Estate Index Fund
Vanguard Real Estate Index Fund ETF Shares (VNQ) invests in stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels, and other real property
- Goal is to closely track the return of the MSCI US Investable Market Real Estate 25/50 Index
- Offers high potential for investment income and some growth; share value rises and falls more sharply than that of funds holding bonds
- Appropriate for helping diversify the risks of stocks and bonds in a portfolio
| Ticker | Name | Weight |
|---|---|---|
| — | Vanguard Real Estate II Index Fund Institutional Plus Shares | 13.06 % |
| PLD | Prologis Inc. | 7.61 % |
| AMT | American Tower Corp. | 5.82 % |
| EQIX | Equinix Inc. | 4.90 % |
| SPG | Simon Property Group Inc. | 3.23 % |
| WELL | Welltower Inc. | 3.16 % |
| PSA | Public Storage | 2.90 % |
| CCI | Crown Castle International Corp. | 2.90 % |
| O | Realty Income Corp. | 2.84 % |
| DLR | Digital Realty Trust Inc. | 2.67 % |
3. Invesco S&P 500 Equal Weight Real Estate ETF
Invesco S&P 500 Equal Weight Real Estate ETF (RSPR) is based on the S&P 500 Equal Weight Real Estate Index. The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index equally weights stocks in the real estate sector of the S&P 500 Index. The Fund and the Index are rebalanced quarterly. Effective on Tuesday June 6, 2023 the Fund’s ticker changed from EWRE to RSPR. No other changes were made to the Fund. See the prospectus for more information.
| Ticker | Name | Weight |
|---|---|---|
| DOC | Healthpeak Properties Inc | 3.64% |
| WELL | Welltower Inc | 3.55% |
| VTR | Ventas Inc | 3.54% |
| ESS | Essex Property Trust Inc | 3.49% |
| CPT | Camden Property Trust | 3.48% |
| EQR | Equity Residential | 3.48% |
| AVB | AvalonBay Communities Inc | 3.48% |
| CSGP | CoStar Group Inc | 3.45% |
| O | Realty Income Corp | 3.44% |
| UDR | UDR Inc | 3.39% |
2. The Real Estate Select Sector SPDR Fund
The Real Estate Select Sector SPDR Fund (XLRE) invests companies included in each Select Sector Index are selected on the basis of general industry classification from a universe of companies defined by the Standard & Poor’s 500 Composite Stock Index. The eleven Select Sector Indexes upon which the Select Sector SPDR Funds are based together comprise all of the companies in the S&P 500.
The Real Estate Select Sector Index includes companies from the following industries: real estate management and development and REITs, excluding mortgage REITs.
| Name | Weight |
|---|---|
| PROLOGIS INC | 10.33% |
| AMERICAN TOWER CORP | 8.95% |
| EQUINIX INC | 7.40% |
| WELLTOWER INC | 5.69% |
| SIMON PROPERTY GROUP INC | 5.01% |
| REALTY INCOME CORP | 4.76% |
| DIGITAL REALTY TRUST INC | 4.75% |
| PUBLIC STORAGE | 4.54% |
| CROWN CASTLE INC | 4.49% |
| COSTAR GROUP INC | 3.82% |
1. Pacer Benchmark Industrial Real Estate SCTR ETF
Pacer Benchmark Industrial Real Estate SCTR ETF (INDS) is a rules-based strategy that seeks to track the Solactive GPR Industrial Real Estate Index and invest in industrial REITs that are part of the e-commerce distribution and logistics networks along with self-storage facilities.
- Publicly Traded REITs have traditionally been good sources of income for investors and may be capital appreciation vehicles as well
- Dividends are a source of income to investors
- REITs are not directly correlated to traditional equity markets and may offer portfolio diversification and reduce volatility
| Ticker | Name | Weight |
|---|---|---|
| PSA | Public Storage | 15.19% |
| PLD | Prologis Inc | 12.82% |
| WPC | WP Carey Inc | 4.92% |
| EXR | Extra Space Storage Inc | 4.73% |
| SGRO LN | Segro PLC | 4.62% |
| CUBE | CubeSmart | 4.49% |
| EGP | EastGroup Properties Inc | 4.34% |
| STAG | STAG Industrial Inc | 4.17% |
| REXR | Rexford Industrial Realty Inc | 4.07% |
| FR | First Industrial Realty Trust Inc | 4.04% |
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|---|---|---|---|---|---|
| Advice | InvestCAN | InvestRESP | InvestUSA | RetireCAN | RetireMGN |
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