Top 3 Real Estate Investment Trust (REIT) ETFs to Consider in 2024

Real Estate Investment Trusts (REITs) offer a way for you to participate in the real estate market without having to buy or manage properties yourself. REIT ETFs (or exchange traded funds) take this a step further by allowing investors to buy a diversified portfolio of REITs in a single transaction. Here are three REIT ETFs that are worth considering in 2023.

1. Vanguard Real Estate ETF (VNQ)

The Vanguard Real Estate ETF is one of the largest and most popular REIT ETFs in the market. It seeks to track the performance of the MSCI US Investable Market Real Estate 25/50 Index, which includes stocks of companies involved in real estate rental, management, and development, as well as REITs.

The fund has a diversified portfolio of REITs, with exposure to a wide range of property types, including residential, office, industrial, retail, and healthcare properties. The fund’s largest holdings include American Tower Corp, Prologis Inc, and Equinix Inc.

The Vanguard Real Estate ETF has a low expense ratio of 0.12%, making it a cost-effective choice for investors looking to gain exposure to the real estate sector.

2. iShares U.S. Real Estate ETF (IYR)

The iShares U.S. Real Estate ETF seeks to track the investment results of the Dow Jones U.S. Real Estate Index, which measures the performance of the real estate sector of the U.S. equity market. The fund invests in a variety of REITs, with a focus on companies that are involved in the real estate industry and other real estate-related investments.

The fund’s largest holdings include American Tower Corp, Crown Castle International Corp, and Prologis Inc. The fund has exposure to a variety of property types, including residential, office, industrial, and specialty properties.

The iShares U.S. Real Estate ETF has an expense ratio of 0.42%.

3. Schwab U.S. REIT ETF (SCHH)

The Schwab U.S. REIT ETF seeks to track the total return of the Dow Jones U.S. Select REIT Index. The fund invests in a variety of REITs, including those involved in the ownership and operation of real estate, such as residential, office, retail, and industrial properties.

The fund’s largest holdings include American Tower Corp, Prologis Inc, and Simon Property Group Inc. The fund offers exposure to a variety of property types, making it a good choice for investors looking for diversified exposure to the real estate sector.

The Schwab U.S. REIT ETF has a low expense ratio of 0.07%, making it one of the most cost-effective REIT ETFs on the market.

These three REIT ETFs offer a mix of diversified exposure to the real estate sector, low expense ratios, and a focus on income-producing properties. As always, it’s important to do your own research and consider your own investment goals and risk tolerance before making an investment decision.

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