Best Real Estate ETFs: Invest in Property and REIT Funds

REITs — real estate investment trusts — have been a distinct asset class in the United States since Congress created them in 1960. The S&P 500 recognized their importance by adding Real Estate as its eleventh sector in 2016. Real estate ETFs bundle dozens or even hundreds of these trusts into a single tradeable fund, giving exposure to property markets without the burdens of direct ownership: no tenants, no mortgages, no maintenance.

REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends, which makes them natural candidates for income-oriented ETFs. The two main categories are equity REITs, which own and operate physical properties, and mortgage REITs (mREITs), which invest in real estate debt.

Real estate ETFs span a wide range of property sectors:

  • Industrial & logistics: Warehouses and distribution centers, driven by e-commerce growth.
  • Data centers & cell towers: Digital infrastructure serving the surge in data storage and wireless communication.
  • Healthcare: Senior housing, hospitals, medical offices, and research labs.
  • Residential: Apartment buildings, student housing, manufactured homes, and single-family rentals.
  • Retail & lodging: Shopping centers, malls, hotels, and resorts.
  • Specialty: Self-storage facilities, gaming properties, farmland, and outdoor advertising.

The Vanguard Real Estate ETF (VNQ) is the largest and most widely held REIT ETF. It tracks the MSCI US Investable Market Real Estate 25/50 Index and holds roughly 148 companies spanning large, mid, and small-cap real estate firms. Both passive index funds and actively managed REIT ETFs exist — active managers have historically held a slight edge in the real estate category.

One practical consideration: REIT dividends are typically taxed as ordinary income, so holding real estate ETFs in tax-advantaged accounts like IRAs or 401(k)s can be beneficial. REITs are also sensitive to interest rate changes, and their diversification benefits tend to shrink during broad market downturns.

For individual REIT stocks ranked by dividend yield, see our dedicated page. You can also explore our complete ETF list or browse top dividend ETFs across all sectors.

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The table below lists real estate ETFs with live pricing, performance data, and fund details.

Real Estate and REIT ETFs
StockPriceChange %52 Week Range
$88.753.10%
$21.373.24%
$40.623.10%
$24.953.11%
$44.262.87%
$93.453.13%
$58.513.15%
$61.213.16%
$100.313.20%
$45.752.96%
$26.653.25%
$94.943.25%
$22.493.24%
$82.743.63%
$20.474.46%
$43.712.96%
$31.003.40%
$59.362.94%
$26.992.86%
$9.784.40%
$20.773.87%
$36.423.40%
$15.343.31%
$20.750.29%
$30.630.00%
$22.253.80%
$28.192.96%
$26.109.48%
$8.369.51%
$92.552.88%
$8.873.37%
$58.475.65%
$24.853.46%
$27.312.35%
$49.106.31%
$26.970.00%
$24.371.85%
$27.013.21%
$17.263.11%
$21.963.04%
$12.706.82%
$26.231.55%
$35.931.96%
$21.200.00%