The best real estate ETFs
How to invest in the real estate sector using ETFs
With sector ETFs, you invest in a specific part of the economy, for example in the real estate sector. The most widely used standard in the financial industry for dividing the economy into sectors is the Global Industry Classification Standard (GICS). The major index providers MSCI and S&P use this standard consisting of 11 sectors and 68 assigned industries.
For the classification of listed companies in each sector, the index providers analyse in which business segment companies are generating the majority of their sales and profits. Additionally, the positioning and public perception of a company are also taken into account.
0.24% p.a. - 0.59% p.a.
annual total expense ratio (TER) of real estate ETFs
on the real estate sector, which are tracked by ETFs
on the real estate sector
How do I invest in the real estate sector?
An industry or sector index consists of all the companies of a certain sector. A global real estate ETF thus gives you the opportunity to invest in the largest real estate companies and real estate investment trusts (REITS) worldwide.
Sector ETFs of this type should not be mixed up with thematic ETFs. Thematic ETFs track a non-standardised industry group and a specific investment theme. We provide you with an overview of the available thematic ETFs here.
justETF tip:You can find out more about sector ETFs in our articles Investing in different sectors via ETFsand What sort of sector ETFs are available?.
Which companies are included in real estate ETFs?
The real estate sector includes companies involved in the development and operation of real estate. It also includes providers of real estate-related services and real estate investment trusts.
In this investment guide, you will find all ETFs that allow you to invest globally in companies from the real estate sector. You will also find ETFs that were launched on genuine real estate indices which do not belong to a sector index family. For a performance comparison of the various ETF sectors, please have a look at our market overview.
Dow Jones Global Select Real Estate Securities performance
Real Estate ETFs in comparison
The most important factors at a glance
In the table below we have listed the currently available real estate ETFs. Via the "Properties" and "Performance" tabs, you can find detailed information on these ETFs and sort them according to your desired criterion. More information about the different criteria when choosing an ETF can be found in our article on ETF selection.
ETF
ISIN | Fund size
in m GBP | TER
in % | Inception date | Use of profits | Fund domicile | Replication method |
| iShares Developed Markets Property Yield UCITS ETFIE00B1FZS350 | 944 | 0.59% p.a. | 20/10/2006 | Distributing | Ireland | Full replication |
| HSBC FTSE EPRA NAREIT Developed UCITS ETF USDIE00B5L01S80 | 636 | 0.24% p.a. | 20/06/2011 | Distributing | Ireland | Full replication |
| VanEck Global Real Estate UCITS ETFNL0009690239 | 262 | 0.25% p.a. | 14/04/2011 | Distributing | Netherlands | Full replication |
| Amundi Index FTSE EPRA NAREIT Global UCITS ETF DRLU1437018838 | 235 | 0.24% p.a. | 17/11/2016 | Accumulating | Luxembourg | Full replication |
| iShares Developed Markets Property Yield UCITS ETF USD (Acc)IE00BFM6T921 | 219 | 0.59% p.a. | 10/05/2018 | Accumulating | Ireland | Full replication |
| SPDR Dow Jones Global Real Estate UCITS ETFIE00B8GF1M35 | 181 | 0.40% p.a. | 23/10/2012 | Distributing | Ireland | Optimized sampling |
| HSBC FTSE EPRA NAREIT Developed UCITS ETF USD (Acc)IE000G6GSP88 | 31 | 0.24% p.a. | 19/07/2022 | Accumulating | Ireland | Full replication |
| SPDR Dow Jones Global Real Estate UCITS ETF AccumulatingIE00BH4GR342 | 27 | 0.40% p.a. | 16/10/2019 | Accumulating | Ireland | Optimized sampling |
| HSBC FTSE EPRA NAREIT Developed Islamic UCITS ETF USD (Acc)IE000U679IT9 | 8 | 0.35% p.a. | 20/09/2023 | Accumulating | Ireland | Full replication |
| WisdomTree New Economy Real Estate UCITS ETF USD AccIE000MO2MB07 | 1 | 0.45% p.a. | 07/02/2022 | Accumulating | Ireland | Full replication |
| WisdomTree New Economy Real Estate UCITS ETF USD DistIE000X9TLGN8 | 1 | 0.45% p.a. | 07/02/2022 | Distributing | Ireland | Full replication |
ETF
ISIN | 1 month
in % | 3 months
in % | 6 months
in % | 1 year
in % | 3 years
in % | 5 years
in % |
| iShares Developed Markets Property Yield UCITS ETFIE00B1FZS350 | -4.24% | 11.14% | 1.40% | -7.25% | 7.58% | 1.47% |
| HSBC FTSE EPRA NAREIT Developed UCITS ETF USDIE00B5L01S80 | -3.85% | 11.37% | 1.85% | -6.16% | 8.89% | 3.43% |
| VanEck Global Real Estate UCITS ETFNL0009690239 | -3.96% | 11.92% | 3.62% | -3.66% | 13.45% | 8.64% |
| Amundi Index FTSE EPRA NAREIT Global UCITS ETF DRLU1437018838 | -4.05% | 10.57% | 1.43% | -6.27% | 8.10% | 2.97% |
| iShares Developed Markets Property Yield UCITS ETF USD (Acc)IE00BFM6T921 | -4.18% | 11.32% | 1.47% | -7.40% | 7.55% | 1.47% |
| SPDR Dow Jones Global Real Estate UCITS ETFIE00B8GF1M35 | -3.89% | 11.31% | 1.52% | -6.15% | 11.86% | 3.12% |
| HSBC FTSE EPRA NAREIT Developed UCITS ETF USD (Acc)IE000G6GSP88 | -3.85% | 11.44% | 1.85% | -6.12% | - | - |
| SPDR Dow Jones Global Real Estate UCITS ETF AccumulatingIE00BH4GR342 | -3.88% | 11.31% | 1.55% | -6.14% | 11.83% | - |
| HSBC FTSE EPRA NAREIT Developed Islamic UCITS ETF USD (Acc)IE000U679IT9 | -3.75% | 11.16% | - | - | - | - |
| WisdomTree New Economy Real Estate UCITS ETF USD AccIE000MO2MB07 | -4.03% | 12.92% | 2.24% | -5.08% | - | - |
| WisdomTree New Economy Real Estate UCITS ETF USD DistIE000X9TLGN8 | -3.99% | 13.06% | 2.28% | -5.07% | - | - |
Source: justETF.com; As of 31/01/2024
FAQs
REIT ETFs offer investors excellent income, top quality management and valuable diversification. May 14, 2024, at 4:48 p.m. REIT ETFs provide investors with exposure to the commercial real estate sector along with the benefits of diversification and professional portfolio management.
Are real estate ETFs a good investment? ›
REIT ETFs offer investors excellent income, top quality management and valuable diversification. May 14, 2024, at 4:48 p.m. REIT ETFs provide investors with exposure to the commercial real estate sector along with the benefits of diversification and professional portfolio management.
Which REIT has the best returns? ›
Best-performing REIT stocks: May 2024
| Symbol | Company | REIT performance (1-year total return) |
|---|
| DHC | Diversified Healthcare Trust | 162.86% |
| SLG | SL Green Realty Corp. | 129.09% |
| UNIT | Uniti Group Inc. | 88.43% |
| VNO | Vornado Realty Trust | 75.08% |
1 more rowMay 20, 2024
The largest Real Estate ETF is the Vanguard Real Estate ETF VNQ with $31.45B in assets. In the last trailing year, the best-performing Real Estate ETF was PTEC at 26.77%. The most recent ETF launched in the Real Estate space was the iREIT - MarketVector Quality REIT Index ETF IRET on 03/06/24.
What is the most successful ETF? ›
1. VanEck Semiconductor ETF. The VanEck Semiconductor ETF (SMH) tracks a market-cap-weighted index of 25 of the largest U.S.-listed semiconductors companies. Midcap companies and foreign companies listed in the U.S. can also be included in the index.
Do REITs beat S&P 500? ›
REITs are also attractive thanks to their market-beating returns. During the past 25 years, REITs have delivered an 11.4% annual return, crushing the S&P 500's 7.6% annualized total return in the same period. Image source: Getty Images. One reason for REITs' outperformance is their dividends.
Which REIT pays the highest dividend? ›
The market's highest-yielding REITs
| Company (ticker symbol) | Sector | Dividend yield |
|---|
| Chimera Investment (CIM) | Mortgage | 14.3% |
| KKR Real Estate Finance Trust (KREF) | Mortgage | 14.0% |
| Two Harbors Investment (TWO) | Mortgage | 14.0% |
| Ares Commercial Real Estate (ACRE) | Mortgage | 13.8% |
7 more rowsFeb 28, 2024
Non-traded REITs have little liquidity, meaning it's difficult for investors to sell them. Publicly traded REITs have the risk of losing value as interest rates rise, which typically sends investment capital into bonds.
What is the 90% rule for REITs? ›
To qualify as a REIT, a company must have the bulk of its assets and income connected to real estate investment and must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.
Can I invest $1000 in a REIT? ›
While they aren't listed on stock exchanges, non-traded REITs are required to register with the SEC and are subject to more oversight than private REITs. According to the National Association of Real Estate Investment Trusts (Nareit), non-traded REITs typically require a minimum investment of $1,000 to $2,500.
Top sector ETFs
| Fund (ticker) | YTD performance | Expense ratio |
|---|
| Vanguard Information Technology ETF (VGT) | 4.8 percent | 0.10 percent |
| Financial Select Sector SPDR Fund (XLF) | 8.8 percent | 0.09 percent |
| Energy Select Sector SPDR Fund (XLE) | 15.9 percent | 0.09 percent |
| Industrial Select Sector SPDR Fund (XLI) | 8.7 percent | 0.09 percent |
Top 100 Highest Dividend Yield ETFs
| Symbol | Name | Dividend Yield |
|---|
| TSL | GraniteShares 1.25x Long Tesla Daily ETF | 97.61% |
| NVDQ | T-Rex 2X Inverse NVIDIA Daily Target ETF | 88.02% |
| CONY | YieldMax COIN Option Income Strategy ETF | 62.48% |
| KLIP | KraneShares China Internet and Covered Call Strategy ETF | 57.72% |
93 more rowsCompare the best growth ETFs
| FUND(TICKER) | EXPENSE RATIO | 10-YEAR RETURN AS OF MAY 1 |
|---|
| Vanguard Growth ETF (VUG) | 0.04% | 15.07% |
| iShares Russell 1000 Growth ETF (IWF) | 0.19% | 15.78% |
| iShares S&P 500 Growth ETF (IVW) | 0.18% | 14.34% |
| Schwab U.S. Large-Cap Growth ETF (SCHG) | 0.04% | 15.95% |
3 more rowsPerformance of ETFs
| Schemes | Latest Price | Returns in % (as on May 30, 2024) |
|---|
| CPSE Exchange Traded Fund | 91.95 | 64.99 |
| Kotak PSU Bank ETF | 732.76 | 71.75 |
| Nippon ETF PSU Bank BeES | 82.33 | 71.69 |
| SBI - ETF Nifty Next 50 | | 34.31 |
32 more rowsThe Top 5 Best Performing ETFs of the Last 5 Years
- Invesco Semiconductors ETF (PSI)
- iShares U.S. Home Construction ETF (ITB)
- iShares Semiconductor ETF (SOXX)
- VanEck Semiconductor ETF (SMH)
- Grayscale Bitcoin Trust (GBTC)
Vanguard S&P 500 ETF
Exchange-traded funds (ETFs) are one of the safer types of investments out there, as they require less effort than investing in individual stocks while also increasing diversification.
What is the downside of owning an ETF? ›
The greatest risk for investors is market risk. If the underlying index that an ETF tracks drops in value by 30% due to unfavorable market price movements, the value of the ETF will drop as well.
Why are REITs performing poorly? ›
Here's an explanation for how we make money . More than a year of interest rate hikes by the Federal Reserve pushed down returns on real estate investment trusts, or REITs. While higher rates negatively impacted nearly every sector of the economy in 2022 and most of 2023, real estate was hit especially hard.
What are the risks of REIT ETFs? ›
REIT ETFs are also subject to market risk, which is the risk of a decline in the overall stock market. If the stock market experiences a downturn, REIT ETFs may decline in value as well. To minimize this risk, investors should consider investing in REIT ETFs that have a low correlation to the overall stock market.
Are REITs a good investment now? ›
Real estate investment trusts, also known as REITs, typically offer high yields, making them appealing choices for income investors. The real estate stocks that Morningstar covers, as a group, look 12% undervalued as of May 10, 2024.
